By Colleen Howe
BEIJING (Reuters) -China’s imports of Mongolian coal reached a record monthly high in September, customs data showed on Monday, as Beijing’s efforts to tackle overcapacity pushed up domestic prices and sent traders looking for cheaper supply.
Mongolia shipped 9.29 million metric tons of coal to China in September, according to China’s General Administration of Customs. That marked a 33% surge from a year earlier and the highest monthly level on record since customs started reporting the data in 2015.
China has placed restrictions on coal production in recent months following an unexpected supply increase in the first half of the year that weighed on prices, widely perceived to be part of China’s so-called “anti-involution” campaign aimed at curbing overcapacity and unsustainably low prices across many industries.
The move has pushed domestic thermal coal prices to the highest level in roughly eight months. Futures prices for metallurgical coal used in steelmaking have jumped 30% since the beginning of July.
That has been an opportunity for low-cost exporters across the border in Mongolia, according to Simon Wu, senior consultant for metallurgical coal markets at Wood Mackenzie.
“Mongolia as a neighbouring country benefits from the short delivery distance, and expands its market share the most,” Wu said.
Firat Ergene, lead insight analyst for coal at maritime data analysis platform Kpler, said Mongolian coal also benefited from a “diversification incentive”. China’s coal imports from other suppliers such as Australia and the U.S. have been tumultuous because of trade tensions in recent years.
“I think Mongolian coal fulfils the need for a steady long-term supplier.”
China’s September coal imports from top supplier Indonesia also recovered to their highest level in nine months, after Indonesia cancelled a requirement to use a government benchmark unpopular with traders.
On a year-on-year basis, Indonesian coal imports rose 1% to 21.48 million tons in September.
Below are figures on China’s imports from its top four suppliers, in metric tons:
Country Sept 2025 Year-on-year Jan-Sept Year-on-year
% change 2025 % change
Indonesia 21,484,038 1% 143,245,55 -13%
9
Mongolia 9,293,145 33% 61,923,226 2%
Russia 6,769,716 -19% 66,343,065 -7%
Australia 6,286,529 -19% 55,175,268 10%
(Reporting by Colleen Howe;Editing by Muvija M)
