In 2024, China achieved a historic milestone in its coking coal imports, with total shipments reaching 121.7 million metric tons, representing a 19.7% increase from the previous year. This surge marks the highest level of coking coal imports in China’s history, highlighting the country’s strong demand for the key raw material used in steel production. The overall value of these imports in 2024 grew by 7% year-on-year to $18.5 billion, driven by an expanding domestic steel industry and increasing industrial activities.
Key Suppliers Driving the Surge
The increase in China’s coking coal imports was primarily driven by Mongolia and Russia, which have solidified their positions as the dominant suppliers. Mongolia supplied 53.9 million metric tons of coking coal, reflecting a 5.3% year-on-year growth. Russia followed with 30.2 million metric tons, marking a 7.7% increase from 2023. Both countries have become increasingly integral to China’s supply chain for this vital raw material.
In December 2024, Mongolia shipped 4.2 million metric tons of coking coal to China, although this was a 19.1% decrease from November. Despite this dip, the overall annual growth from these suppliers played a crucial role in maintaining China’s record-breaking coking coal import figures for the year.
Other Contributing Suppliers
In addition to Mongolia and Russia, other countries also contributed to China’s growing demand for coking coal. Australia and the United States both increased their exports to China in 2024, with shipments reaching 10.3 million metric tons and 10.7 million metric tons, respectively. This marks a positive trend for these suppliers, who have faced varying challenges in accessing the Chinese market in recent years.
On the other hand, Indonesia experienced a slight decline in exports to China, with shipments dropping by 6% year-on-year to 2.8 million metric tons. This drop reflects a shifting global supply landscape, where certain countries are either increasing or decreasing their market share in China’s coking coal market.
Monthly and Annual Trends: A Closer Look
While the overall figures for 2024 were robust, there was a notable decrease in December. Coking coal imports for the month dropped by 12.9% compared to the previous month, totaling 10.7 million metric tons. This decrease may be attributed to various factors, including seasonal fluctuations in demand and potential logistical challenges. However, this reduction did not significantly affect the overall growth in coking coal imports for the year.
In addition to the rise in imports, China’s coke exports in December saw a modest increase of 3.9% month-on-month, reaching 557,130 metric tons. However, on a year-on-year basis, December exports of coke fell by 28.9%, contributing to an overall 5.3% decrease in China’s coke exports for the year, totaling 8.3 million metric tons. This decline in coke exports may reflect the domestic market’s prioritization of coking coal supplies over exports, as well as challenges in meeting international demand for Chinese coke.
Comparison with Previous Year
In comparison to 2023, China’s coking coal imports saw an even sharper increase of 60.6%, reaching 100 million metric tons that year. The corresponding monetary value of these imports in 2023 amounted to $17.22 billion, a 15.1% increase from 2022. This sharp rise in 2023 was driven by China’s recovery from the pandemic and the resulting surge in industrial production, which pushed demand for steel and its raw materials to new heights.
