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China's 2023 coal imports hit record on rising demand, high domestic prices

Workers operate loaders unloading imported coal at a port in Lianyungang, Jiangsu province, China December 5, 2019. REUTERS/Stringer/File Photo Acquire Licensing Rights

BEIJING, Jan 12 (Reuters) - China's coal imports surged 61.8% to a record high in 2023, customs data showed on Friday, as demand for commodities rebounded after the COVID-19 pandemic while users turned to imports due to rising prices and diminished quality of domestic coal.

Imports for the year totalled 474.42 million metric tons, the highest on record, according to China's General Administration of Customs. That was also above analysts' expectations of 460 million-470 million tons for the full year.

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Last month's coal imports also notched an all-time monthly high of 47.3 million tons, up 8.7% from November, as a record-breaking cold wave in many parts of the country drove up coal demand.

Buyers had also begun stocking up ahead of the Lunar New Year holiday, which begins on Feb. 10 this year.

China's cabinet last month reinstated coal import tariffs of 3%-6% on nations without bilateral free trade agreements, effective from January 2024 and applying largely to key suppliers Mongolia and Russia.

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However, traders say the tariffs will not erase imported coal's price advantage, leading to a likely rise in imports again in 2024.

Mongolian coal imports, in particular, ware likely to continue increasing as the two countries worked to improve rail links and simplify customs clearance last year.

Still, some analysts think this year's imports could fall from the 2023 record high, if rising renewable power generation continues to capture most of the growth in electricity demand.