China's coal purchases from Australia hit a 2020-era peak in September

what happened

Coal shipments from Australia to China climbed 56% year on year in September to 9.81 million metric tons, the strongest monthly figure since April 2020, according to customs data reported by Reuters. Purchases of Australian steelmaking coal more than quadrupled to 2.43 million tons, as a fatal accident at a coking coal mine in Shanxi in May still limits output in China.

Supply from Indonesia was squeezed by changes to its export quota approvals and by low river levels in Kalimantan that hampered transport. Indonesian coal imports fell 32% to 14.62 million tons, while Russian deliveries rose 39% to 9.43 million tons, the highest since June 2024. Mongolia's shipments eased 8% to 8.56 million tons, though its year-to-date volume is up 40% at 86.93 million tons.

Overall Chinese coal imports dropped 6% in September, weighed down by large domestic stockpiles and the Indonesian shortfall. Under a US-China summit agreement last month, China will buy 10 million tons of US coal a year in 2027 and 2028. Imports from the US have nearly stopped since a 15% retaliatory tariff in February 2025: just 29,663 tons in the first nine months of 2026 versus almost 12 million a year earlier.

why it matters

For Australian exporters, stronger Chinese demand is a positive, while tighter Indonesian supply reshapes the balance in the regional thermal and coking coal markets. The planned US purchases hint at a partial easing of trade tension, though the volumes are small, roughly 2% of China's total coal imports each year.

market impact

Coal: stronger Chinese buying from Australia supports seaborne demand, while weaker Indonesian supply tightens the market

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