China’s coal production last month fell by 6.8% on the year to a total 385 million tons. The monthly total was, however, an increase on August, Bloomberg reported, citing the country’s statistics agency.
China has been curbing coal production this year on abundant inventories and lower demand from power generators earlier in the year. In September, thermal power generation declined 1.4% year over year. With winter starting, however, the production—and power generation—trend could reverse as demand for heating peaks.
Earlier data showed that China also imported less coal last month, at 43.37 million tons, which was 5.7% lower than the total import volumes for September 2025. Still, like production, September imports were higher than the August total.
Coal prices in the world’s biggest coal consumer, which still relies on the fuel for nearly 50% of its power generation, have rallied by 24% since the middle of July, amid tighter supply and high demand.
China’s spot thermal coal prices have been rising since late spring, when the deadliest mining disaster in 16 years in May prompted authorities to step up safety checks and order suspension of activities in a number of mines in the key coal-producing region of Shanxi.
Globally, meanwhile, coal demand is on the rise as the war premium on liquefied natural gas dampens demand for the cleaner fuel. Last month, the International Energy Agency said it expected demand for coal this year to rise to an all-time high—despite the net-zero push that the IEA is very much in favor of, despite the surge in LNG export and import capacity, and despite the closure of many coal power plants in Europe and North America. Coal-buying is set for an especially strong fourth quarter of the year, as peak demand season begins.
By Irina Slav for Oilprice.com
