China's coal imports improved further in June, with growth accelerating sharply from the previous month and posting a double-digit year-on-year increase.

Data from the General Administration of Customs showed June 2026 coal imports reached 42.78 million tonnes, up 28.60% from May and 29.49% from a year earlier. The month-on-month growth rate widened by 28.05 percentage points from May, when imports fell 7.7% year on year.

The strong performance exceeded market expectations, as traders had widely anticipated a continued decline in imports due to Indonesian coal policy changes, tighter global supply and rising demand.

Sxcoal identified several factors behind the surge. First, China's national forecast for record summer peak power demand, combined with early load spikes in parts of the south since April, prompted power plants to front-load stockpiling. Coal purchased from late April through May arrived at ports in June, boosting import volumes.

Second, a concentrated arrival of spot cargoes since early June caused severe congestion at south China ports, with some vessels still awaiting buyers. Power plants capitalized on the situation to lower bid prices, while traders with low-cost inventories accelerated deliveries, improving transaction volumes.

Third, Mongolian coal exports remained elevated despite some fluctuations in June clearance. Mongolia exported 10.31 million tonnes of coal in June, up 4.76% month on month and 69.01% year on year, according to Mongolian customs data.

Finally, domestic thermal coal prices weakened in June, widening the price advantage for some imported grades and prompting coastal power plants to adjust stockpile calorific values. Meanwhile, ongoing supply tightness in domestic coking coal following a Shanxi mine accident boosted demand for imported alternatives.

The June surge lifted China's first-half coal imports to 225.40 million tonnes, up 1.7% year on year — the second-highest level on record for the period, trailing only the first half of 2024.

Looking ahead, the summer peak season has yet to materialize, keeping power plants' active procurement low. However, persistent port congestion in South China and continued distressed cargo sales suggest July imports could again beat expectations.