China coal importers to cut purchases amid record domestic output

China, the world’s top coal importer, may cut imports by up to 30per cent this year as domestic output holds at record levels and strong demand for non-Russian supplies keeps import prices above those in the local market, industry sources said.

The drop in China’s coal imports may help cap global prices that are expected to surge as buyers in Europe and North Asia try to replace lost Russian shipments.

The European Union is expected to impose a ban on Russian coal imports - which would take full effect from mid-August - over the invasion of Ukraine that Moscow calls a “special military operation”.

Energy consultancies forecast China’s thermal coal imports could drop between 11per cent and 30per cent this year as the strong import prices cool demand.

“The market is very quiet. Buyers are reluctant to make deals as seaborne prices are still higher than domestic prices,” said a Beijing-based coal trader.

Beijing capped China’s domestic prices last year to stave off power shortages.