China's Construction of Coal Power Plants Pushes Coal Prices Higher

Coal prices rose in Newcastle and Rotterdam in different months, driven by news of China's plans to build coal-fired power plants.For example, the coal price in Newcastle rose to $95.5 per ton in April, and in Rotterdam to $103.65 per ton in April. The Chinese government has announced that it will continue to build coal-fired power plants until 2027, with the aim of meeting peak demand in some areas, stabilizing the grid and supplementing new energy sources. This is because China's coal consumption is not expected to peak until 2028, later than previously expected.2025 China's coal imports fell 6% y/y to 38.73 million tons in March, mainly due to high port inventories and weak domestic demand, with domestic power coal prices falling to their lowest since March 2021.2025 China's coal imports fell by 4.5% y/y to 38.73 million tons, mainly due to high port inventories and weak domestic demand. However, imports in January-February hit a record for the same period, and cumulative imports in the first quarter edged down 0.91 TP3T from a year earlier.