China’s coal imports surged in March to their highest in any month over the past three years as utilities increased purchases on expectations for a demand recovery and after curbs on bringing in Australian coal were removed.

The world’s top coal consumer brought in 41.17 million tonnes last month, the highest level since January 2020, data from the General Administration of Customs showed on Thursday.

 That compares to an average of 30.32 million tonnes per month in the January-February period, and represents an increase of 151% from March last year.

 For the first quarter of 2023, China imported a total of 101.8 million tonnes of coal, nearly doubling from a low base last year, the data showed.

 Coal demand in China is expected to be robust in the second quarter as the economy continues to emerge from the country’s now-abandoned zero-COVID regime.

 In the second quarter, China's demand for coal is anticipated to be strong as the economy continues to recover from the now-defunct zero-COVID policy.

After Beijing loosened limitations on coal trading with Canberra, it was anticipated that Australian coal arrivals would have increased in March.

 Increased imports of Australian thermal coal have been prompted by lower prices. At the port of Qinhuangdao in northern China, domestic thermal coal with an energy content of 5,500 kilocalories costs 1,050 yuan ($152.76) a tonne, but Australian coal of the same quality costs about $120 per tonne on a free-on-board basis.

Australian coal arrivals were expected to have grown in March after Beijing removed restrictions on coal trade with Canberra.

Before the Muslim nation entered the Ramadan celebration in the middle of March, utilities and traders also increased their purchases from Indonesia.

 Prior to the Muslim fasting month, coal production and transportation in Indonesia, China's main thermal coal supplier, often slow down. Ramadan fell in early April of the previous year.