Coal imports from China rose in July to the highest level of the year. Power generators had an increased need for coal in order to keep up with peak summer electricity demand.
Arrivals of petroleum total 23.52 million tons this month, a dramatic increase from the 18.98 million tons from last month and 22% lower than a year ago, data from the General Administration of Customs said on Sunday.
For the first seven months of the year, China imported 138.52 million tonnes of coal, a decrease of 18% from the same period of the previous year.
Daily coal consumption in the past few days has hovered around 2.2 million tonnes, about the same as it was last year, according to Shanghai Shipping Exchange.
Temperatures spiked across the country, stimulating the use of air conditioners. The government vows to avoid power rationing this year and is urging coal-burning power generators, which provide about 60% of the country’s electricity, to keep up their coal reserves.
Data from Refinitiv shows China imported a record 7.38 million tonnes of seaborne coal from Russia in July. Despite this, it is expected that coal demand will soon decrease when temperatures moderate, while industrial activity remains sluggish due to Covid-19 restrictions.