China's coal imports from major source countries rose sharply in June 2026, reflecting a growing preference for imported coal in recent months amid robust domestic demand and tightening domestic availability. Imports from Indonesia posted "above-expectation" growth, leading in both year-on-year and month-on-month gains.

June coal imports totaled 42.78 million tonnes, up 29.5% year on year and 28.6% from the previous month, according to Chinese customs data. Indonesia accounted for 39% of the total, up 5 percentage points from the year's low of 34% in April.

Despite higher prices, China's Indonesian coal imports rose 43.9% year on year and 35.3% month on month to 16.73 million tonnes in June, the second-highest monthly level this year. The import value stood at $1.25 billion, implying an average price of $74.8/t, up $17.5/t year on year and $6.0/t from a month earlier.

Indonesian coking coal imports, though a fraction of thermal coal volumes at just 272,000 tonnes, hit a 2026 high and surged 394.5% year on year and 62.8% month on month. A sharp tightening of domestic coking coal supply following a Shanxi mine accident in late May likely spurred demand for Indonesian material.

The strong June rebound also helped narrow the year-to-date deficit. China imported 90.53 million tonnes of Indonesian coal in the first half of 2026, down just 0.5% year on year, compared with a 7.0% decline in January-May.

Indonesian export supply has been under pressure from production and export restrictions this year. The government cut the annual coal mining quota and raised the domestic market obligation (DMO), limiting volumes available for export.

Although Indonesia announced in mid-June it would revise coal production plans and allow miners to submit additional quota applications from July, production bottlenecks and DMO rules are expected to limit any boost to exports.

Indonesia also planned to impose a coal export tariff from January 1 of 2026, though it didn't taken effect as scheduled. A new centralized export rule, designating state-owned DSI to manage all exports, has added market uncertainty and prompted widespread caution among market participants.

The export policy initially set a transition period from June 1 to December 31, with full implementation scheduled for January 1, 2027. However, Indonesia recently moved the effective date forward to September 1, 2026.

Indonesia remained China's largest coal supplier in June, followed by Mongolia, Australia, Russia and the Philippines. Canada dropped out of the top five, replaced by the Philippines.

Mongolia was the second-largest source with a 25% share. China imported 10.56 million tonnes of Mongolian coal in June, up 61.7% year on year and 6.6% month on month. The import value was $760 million, with an average price of $71.8/t, up $11.0/t year on year and $0.7/t from a month earlier.

China imported 7.71 million tonnes from Australia in June, the second-highest monthly level this year, up 46.3% year on year and 91.2% month on month. Russian coal imports hit a 2026 high of 6.80 million tonnes, down 15.0% year on year but up 24.5% from a month earlier.

The Philippines became the fifth-largest supplier in June, with China importing 390,000 tonnes, down 15.8% year on year but up 19.3% month on month. Shipments from the top five sources accounted for 99% of China's total coal imports in June.

On a cumulative basis for the first half of 2026, only Mongolian coal imports posted positive growth among major suppliers, surging 60.7% year on year. That made Mongolia the key driver of China's total coal import growth, which rose 1.6% year on year to 230 million tonnes in January-June. Improved clearance efficiency at China-Mongolia border ports, geopolitical turmoil in the Middle East lifting international energy prices, and tighter domestic supply all contributed to the inflow of Mongolian coal.