Japan's coal imports rose further in January to their highest level in five months, as December and January typically see peak winter demand, driving higher imports to meet domestic consumption.

Japan imported 15.7 million tonnes of the fuel last month, up 2.15% year on year (YoY) and 7.25% month on month (MoM), according to the latest data from Japan's Ministry of Finance.

The imports were worth 334.11 billion yen ($2 billion) in January, down 13.11% YoY but up 11.3% MoM. That put the average price of coal imports in January at 21,280.56 yen/t, down 14.93% YoY yet up 3.78% MoM.

The majority of imports came from Australia, which contributed 10.48 million tonnes of coal to Japan, up 1.5% YoY and 12.91% MoM. Australian coal accounted for 67% of Japan's total coal imports in January, retaining its place as the leading supplier.

The import value for Australian coal amounted to 224.69 billion yen, with an average price of 21,430.25 yen/t, down 15.17% YoY but rising 2.8% MoM.

Indonesia ranked second at 2.57 million tonnes, up 4.82% YoY but down 10.82% MoM, accounting for 16% of the country's total imports. The import value stood at 48.8 billion yen, with an average price of 18,973.41 yen/t, falling 18.51% YoY yet advancing 4.39% MoM.

The U.S. was the third-largest source with shipments at 911,100 tonnes, occupying 6% of the total imports, up 49.41% YoY and 35.89% MoM. The import value reached 18.49 billion yen, with an average price of 20,290.77 yen/t, sliding 26.82% YoY yet increasing 1.74% MoM.

Canada followed at 808,100 tonnes, down 19.68% YoY and 11.59% MoM, accounting for 5% of the total. The import value reached 21.02 billion yen, with an average price of 26,013.52 yen/t, down 2.91% YoY but up 6.11% MoM.

South Africa was in fifth place with deliveries of 215,400 tonnes, slumping 64.52% YoY and 44.82% MoM, accounting for 1%. The import value reached 4.0 billion yen, with an average price of 18,549.47 yen/t, decreasing 16.73% YoY yet rising 0.84% MoM.

Thermal coal made up 63% of Japan's coal imports over the month at 9.89 million tonnes, down 4.62% YoY but up 5.89% MoM. Thermal coal imports were valued at 189.96 billion yen. The average import price was calculated at 19,197.55 yen/t, declining 17.94% YoY yet gaining 1.89% MoM.

Colder weather in the month drove up heating needs in the country, partially boosting coal burns at power plants. The January temperature averaged 4-4.7 degrees Celsius in Tokyo, lower than 6 degrees Celsius a year ago, data showed.

Coking coal imports were 5.49 million tonnes in January, up 16.38% YoY and 10.42% MoM, accounting for 35% of total coal imports. The imports were worth 135.8 billion yen, putting the average import price at 24,718.98 yen/t, down 12.25% YoY yet up 6.42% MoM.

Japan produced 6.75 million tonnes of crude steel in January, up 2.8% MoM but down 0.5% YoY, according to data released by the Japan Iron and Steel Federation.

Anthracite imports were 311,100 tonnes in January, growing 13.23% YoY but sliding 2.38% MoM, taking up 2% of the total. Lignite imports were 600 tonnes, down 9.75% YoY yet up 6.5% MoM.

Separately, Japan's coke imports reached 94,400 tonnes in January, down 19.29% YoY but jumping 68.39% MoM. The imports were worth 3.36 billion yen, with the average import price at 35,581.72 yen/t, down 25.59% YoY and 17.61% MoM. Coke imports from China accounted for 85% of the total in the month.

With gradually rising temperatures easing heating demand and domestic construction constraints limiting steel consumption, Japan's coal imports are expected to dip in the near term.