China's coal imports extended August's uptrend to hit a new intra-year high in September, supported by tight domestic supply and rising demand, customs data showed.

The country imported 46 million tonnes of coal in September, up 7.64% from the previous month and marking the third consecutive monthly increase, according to data released by the General Administration of Customs. Although the volume was still 3.33% lower than a year earlier, it represented the narrowest year-on-year decline so far this year.

On the supply side, China's domestic coal production growth slowed in September amid frequent rainfall in major mining areas, overproduction rectifications, and intensified safety and environmental inspections.

In August, the country produced 390 million tonnes of raw coal, down 3.2% year on year. Despite a slight rebound from 381 million tonnes in July, the figure remained relatively low for the year, and the weak trend persisted into September.

Meanwhile, demand continued to strengthen. Record-high summer temperatures boosted air conditioning use and pushed power consumption to elevated levels.

China's power consumption reached 1,015.4 TWh in August, up 5% from a year earlier, marking the second straight month above the 1,000 TWh threshold after a historical breakthrough in July, according to data released by the National Energy Administration (NEA) on September 23.

Power generation rose in line with demand. Thermal power output increased 2% year on year to 627.4 TWh in August, while hydropower declined 10% due to reduced water inflows, NEA data showed. This, combined with unstable peak-shaving capacity from new energy sources, underscored the continued importance of thermal power in ensuring supply stability.

In addition, a notable price advantage for imported coal further supported month-on-month import growth. Domestic coal prices grew higher entering September, while imported coal prices remained largely stable, widening the price spread and prompting some power utilities to turn to seaborne supplies. Chinese utilities actively issued tenders for imported coal between late August and early September.

In the first nine months, China imported a total of 345.89 million tonnes of coal, down 11.1% year on year.

High temperatures lingered across southern China. Coupled with the price advantage of imported coal, Chinese power utilities, particularly coastal ones, are expected to continue favoring imported cargoes.

However, with firm offers in the seaborne market and the onset of the traditional October lull, the import volumes this month are highly likely to retreat from both September and the year-ago level.