Analysts and industrial participants expected that China would tighten the rules on imports of coal in the second half of 2020 to support domestic miners, and imports starting in July could fall by as much as a quarter from the corresponding period of 2019.
Sunday’s data shows that 22.06 million tons of coal were imported last month, according to the General Customs Administration released on Sunday. This compares to 30.95 million tons in April and 27.47 million tons in May 2019.
In the first five months of this year, China accounted for 148.71 million tons of fuel, up 16.8% from the same period last year.
Electricity use has increased among both industrial and residential users as firms increase production in the midst of economic recovery following the relaxation of restrictions to curb the coronavirus outbreak, while households have begun to turn up their air conditioning due to warmer weather conditions.
In addition to dwindling water supplies in the country’s major reservoirs, the generation of Curtailed hydropower also boosted the market for coal.
The average daily use of coal by China’s six major coal-fired utilities in coastal regions reached around 628,500 tons in May, which is 15 percent higher than in April and 7.7 percent higher than in the previous year, according to information given by the financial data provider Wind.
