China's coal imports have remained high in July, following a nearly doubled rate of overseas purchases in the first half of 2023. Utilities in the world's largest coal-consuming nation have been importing cheaper coal to meet the peak demand for power during the summer months. According to data from the General Administration of Customs, China imported 39.26 million metric tons of coal last month, slightly lower than June's 39.87 million metric tons but higher than the monthly average of 37 million metric tons between January and June. This represents a 67% increase from July 2022. The increased power demand is due to unusually high temperatures across large parts of the country.

The cost of coal from Indonesia, South Africa, and Australia has been lower than the price of domestically sourced coal in China. Australian coal, for instance, was priced at around 800 yuan ($111.3) per metric ton for deliveries in late August and early September, which was about 40 yuan less than wholesale prices in the northern coal hub of Qinhuangdao.

In the first seven months of 2023, China's coal imports totaled 261 million metric tons, marking an 88.6% increase compared to the same period a year ago. These large imports have contributed to record coal inventories at key power plants, reaching nearly 200 million metric tons by the end of June.