China’s coal glut is resulting in an increasing number of unwanted cargoes being offered abroad.

About 2.5 million tons were exported in the first five months of 2025, according to the latest customs data, which is 13% more than the same period last year. Japan, Indonesia and South Korea were the top destinations, although some cargoes were sent as far afield as the Netherlands.

While the quantities are tiny compared to the country’s near-5 billion tons of output, what’s striking is that overseas sales are rising — and imports are shrinking — at a time when China’s usually busy replenishing supplies to meet the surge in power needs that accompany the sweltering summer months.

China’s imports peaked in 2024 at well over 500 million tons, but its effort to buttress domestic supply with foreign coal has succeeded in delivering a lot more fuel than its market can readily digest. Local prices have collapsed to a four-year low, and imports are running about 8% below last year’s pace. A surplus has formed due to a slowing economy and rising consumption of clean energy, as well as weak demand for coking coal from the steel industry.

Of China’s major trading partners, only Australia — home to some of the highest-quality coal — saw an increase in exports in May. It’s biggest provider, Indonesia, registered a 26% decline in shipments during the month, as Chinese buyers ditched some of their lowest-grade supplies.

The spike in air conditioning demand should give the Chinese market some respite from declines for a few months at least. Smaller miners are also likely to curtail production if prices drop below cost, while safety and environmental inspections in some mining hubs are another stabilizing factor.

On the Wire

Starbucks Corp. said it’s not currently considering a full sale of its China business, disputing a report from Caixin Global that had sent the shares higher in late trading, as the coffee giant battles cheaper local rivals in its second-biggest market.

China aims to boost gold production by over 5% in two years. More retailers of jewelry and accessories are turning to platinum products after the rise in gold prices.

Cobalt prices and shares surged in China after the Democratic Republic of Congo extended its export ban to September, constricting supplies of the raw material used in alloys and batteries.

Three Chinese state-owned firms are among the bidders for Suez SA’s water infrastructure assets in the country.