Coal market in China

Earlier Report Observations

China's coal market volume grew steadily from 3.7 billion tonnes in 2018 to 4.8 billion tonnes in 2022. This expansion was initially supported by capacity control policies and the elimination of outdated production, which raised industry utilization rates. The launch of new large-scale mining operations further contributed to higher output during this period.

The upward trend continued as supply-side structural reforms consolidated the sector and removed inefficient capacity through 2020. Concurrently, rising coal-fired power generation bolstered demand, compensating for weaker consumption from residential and small industrial users and supporting market growth.

A significant surge occurred in 2021 and 2022 when coal prices reached extreme highs. In response, authorities approved substantial capacity expansions and reinforced long-term contracting mechanisms for power coal to ensure supply stability. These measures, alongside ongoing industry concentration, drove production above 4.5 billion tonnes and pushed the total market volume higher.

Production coal in China

In kind, 2017-2020, M t

Globally, China was the leading producer of coal from 2017 to 2020.

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

China's coal production grew for the third consecutive year. In 2020, the country produced 3,902 million tonnes of coal, showing a modest increase of 1.5% compared to the previous year. Over the period from 2017 to 2020, production rose by 10.7%, with an average annual growth rate of 3.5%.

Annual dynamics of production in China in kind, 2017-2020, M t

In value, 2017-2020, B $ US

After two years of growth, China's coal production value declined. In 2020, coal output was valued at 533.0 billion US dollars in China, marking a 10.6% decrease year-over-year. From 2017 to 2020, production value increased by 12.4%, with an average annual growth rate of 4.0%. The highest value was recorded in 2019 at 596.1 billion US dollars, while the largest increase occurred in 2018 at 24.4%.

Annual dynamics of production in China in value, 2017-2020, B $ US

Exports coal from China

Exports in kind, M t

In 2020, China's coal export volume reached 3.2 million tonnes, reflecting a significant drop of 47.0% year-over-year. Between 2017 and 2020, exports decreased by 60.5%, equating to an annualized decline of 26.6%. The largest increase was recorded in 2019 at 22.1%.

Annual dynamics of product's exports from China in kind, 2017-2020, M t

From 2017 to 2020, South Korea, Japan, and Asia (not elsewhere specified) were the primary destinations for China's coal exports in volume terms. South Korea accounted for 41.4% of exports, Japan for 37.0%, and Asia (not elsewhere specified) for 7.9%, together absorbing 86.4% of total coal exports from China.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from China in kind, 2017-2020

Exports in value, M $ US

In 2020, China exported 436 million US dollars worth of coal, representing a sharp decline of 53.3% year-over-year. Over the period from 2017 to 2020, exports decreased by 59.9%, with an average annual decline of 26.3%. The largest increase was recorded in 2019 at 18.6%.

Annual dynamics of product's exports from China in value, 2017-2020, M $ US

From 2017 to 2020, South Korea, Japan, and Asia (not elsewhere specified) remained the leading destinations for China's coal exports in value terms. South Korea accounted for 39.3% of exports, Japan for 36.4%, and Asia (not elsewhere specified) for 8.8%, together comprising 84.5% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from China in value, 2017-2020

Imports coal to China

Imports in kind, M t

China's coal imports increased for the third consecutive year. In 2020, imports stood at 303.3 million tonnes, indicating a slight rise of 1.3% year-over-year. Between 2017 and 2020, imports grew by 12%, equating to an annualized increase of 3.9%.

Annual dynamics of product's imports to China in kind, 2017-2020, M t

From 2017 to 2020, three principal markets—Indonesia, Australia, and Mongolia—together accounted for 83.4% of total coal imports to China in volume terms.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to China in kind, 2017-2020

Imports in value, M $ US

China's coal imports from abroad declined for the second consecutive year. In 2020, imports amounted to 20,287 million US dollars, marking a solid drop of 13.3% compared to the previous year. Between 2017 and 2020, imports decreased by 10.5%, equating to an annualized decline of 3.6%. The highest value was recorded in 2018 at 24,761 million US dollars, while the largest increase occurred in 2018 at 9.3%.

Annual dynamics of product's imports to China in value, 2017-2020, M $ US

From 2017 to 2020, Australia, Indonesia, and Russia were the main suppliers of coal to China in value terms. Australia accounted for 41.4% of imports, Indonesia for 29.3%, and Russia for 11.3%, together comprising 82.1% of total imports.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to China in value, 2017-2020