China's thermal coal imports in March 2026 fell to the lowest level for the month in four years, as high seaborne prices and negative import arbitrage curbed buying interest. Imports from Mongolia, however, remained strong and posted sharp gains.

Thermal coal imports (non-coking coal) stood at 26.64 million tonnes in March, down 11.64% from 30.14 million tonnes a year ago but up 16.45% from 22.87 million tonnes in February, according to the latest data from the General Administration of Customs (GAC).

The March rebound partly reflected cargoes booked in January and February, when import prices had not yet risen sharply and traders still expected tighter domestic supply after the Chinese New Year holiday. Industrial activity resumed after the holiday, while coal burns at coastal power plants increased seasonally.

However, imported coal prices surged in March amid geopolitical tensions in the Middle East, rising global energy prices and stronger coal demand as a substitute for gas. Imported coal prices moved well above comparable domestic coal prices, creating large price gap and sharply reducing Chinese buyers' appetite for new cargoes.

Indonesia, China's largest thermal coal supplier, also faced supply disruptions in March. Slow approvals of annual mine work plans and budgets (RKAB), continued rainfall and reduced activity during Ramadan all constrained production and exports.

By contrast, imports from Mongolia rose strongly on the back of logistics improvements, infrastructure upgrades and competitive pricing. At the end of February, the Mandula border crossing officially launched an AGV cross-border transport project, helping lift flows and partially offset tighter Indonesian supply.

The March import value slid 14.03% year on year (YoY) but increased 17.83% month on month (MoM) to $1.68 billion, the GAC data showed. The average import price was calculated at $62.93/t, falling 2.7% YoY but up 1.2% MoM.

Thermal coal imports totaled 840.31 million tonnes in the first three months this year, up 3.87% YoY. The import value amounted to $5.42 billion, dropping 10.48% YoY. The average import price was $64.45/t over February-March, falling 6.88% YoY.

By type, lignite imports represented the largest share in March, hitting 14.31 million tonnes, down 17.06% YoY but rising 14.26% MoM. It took up 36.6% of China's total coal imports, lower than 40.5% in the same month a year ago.

Other bituminous coal imports increased 9.57% YoY and 23.37% MoM to 10.06 million tonnes, accounting for 25.8% of China's total coal imports. Other coal imports were 1.55 million tonnes, down 13.67% YoY and 19.34% MoM. It represented 4% of the nation's total coal imports. China's anthracite imports stood at 0.71 million tonnes, slumping 62.75% YoY and 20.3% MoM, and grabbed a share of 1.8%.

Indonesia, Australia, Mongolia, Russia and the Philippines remained the top five coal suppliers in the reporting month, taking up 99.8% of China's total thermal coal imports.

China imported 15.34 million tonnes of thermal coal from Indonesia in March, down 13.86% YoY but up 8.37% MoM. It accounted for 57.6% of total thermal coal imports, lower than February's 61.9%.

Australia was the second-largest supplier of thermal coal in the month, with 3.82 million tonnes of coal shipping to China, sinking 9.87% YoY but up 9.34% MoM, taking up 14.3% of the total. Imports from Mongolia came in at 3.49 million tonnes, surging 46.16% YoY and 50.87% MoM, accounting for 13.1%.

Thermal coal receipts from Russia fell 29.05% YoY yet jumped 35.63% MoM to 3.22 million tonnes, while intakes from the Philippines fell by 32.63% YoY while surged 61.78% MoM to 0.72 million tonnes in March.

Since April, imported coal prices have remained volatile and largely uncompetitive against Chinese domestic coal. Tight supply from Indonesia and other exporters, combined with higher freight costs due to elevated oil prices, continued to lift landed costs to China.

Domestically, April marks the traditional shoulder season for thermal coal demand, with milder weather reducing electricity loads. Coastal utilities generally hold comfortable inventories and some have shifted procurement back to the domestic market. As a result, China's thermal coal imports are likely to face renewed pressure in the near term.