Asian seaborne imports of coking coal in February fell to a 3-year low

Asian seaborne imports of coking coal fell to the lowest level in three years in February this year amid declining demand from the largest buyers, China and India. This was written by columnist Clyde Russell in his column for Reuters.

According to data compiled by commodity analysts Kpler, Asian seaborne imports of coking coal in February amounted to 15.85 million tons, down from 20.42 million tons in the previous month. These volumes were the lowest since February 2022.

India reduced maritime imports of this raw material by 27% m/m to 4.56 million tons during the period. This is the weakest figure since December 2021. In recent months, Russell notes, steel production in the country seems to have been weak as the industry struggles with increased imports of steel products and restrictions on coke supplies from abroad.

According to Kpler, China, the second-largest seaborne importer of coking coal, saw its imports drop to an 18-month low in February (2.88 million tons, down from 4.6 million tons in January).

Demand for seaborne coking coal in the country, according to S&P Global, has declined due to increased land imports from neighboring Mongolia, among other things. In 2024, for example, it increased by 5% – to 56.8 million tons.

China’s state planner has announced that steel production is to be cut this year, which will be a negative factor for coking coal imports.
In addition, in February, China imposed a 15 percent duty on imports of US coking coal as part of its response to the US 10 percent duty on all Chinese imports (later increased to 20 percent by Donald Trump).

The duty on coking coal imports from the United States, Russell notes, is likely to virtually stop trade with China, which bought 5.75 million tons last year, which is 11.6% of the total maritime supply of this product. However, the adjustment of sea flows due to the factor of Chinese duties on American coal is likely to add some support to sea prices.

However, the observer notes that factors can change, and maritime imports will begin to recover in April and beyond.

As GMK Center reported earlier, in February Australia reduced coking coal exports by 26.5% year-on-year – to 8.99 million tons. This figure fell by 20.4% compared to the previous month. Deliveries to China fell 52% month-on-month to 0.48 million tons, and to India by 45% month-on-month.