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China and India Cut Coal Imports, Driving Down Asia’s Demand

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Asia’s coal imports have declined notably as two of the region’s largest consumers, China and India, reduce their purchases amid shifting energy strategies and economic pressures. Both countries are adjusting their coal demand in response to domestic policy changes, rising renewable energy adoption, and efforts to control environmental pollution.

China, the world’s largest coal consumer, has scaled back imports to prioritize domestic production and reduce reliance on foreign sources. Meanwhile, India, facing its own energy transition challenges and seasonal demand fluctuations, has also curtailed coal imports, opting to leverage stockpiles and increase domestic mining.

This reduction in coal imports has affected regional trade flows, impacting suppliers in countries like Indonesia and Australia. The shift reflects broader trends in Asia’s energy landscape as governments balance energy security, economic growth, and environmental commitments.

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Analysts suggest that while coal remains a significant part of the energy mix, ongoing efforts to decarbonize and expand renewables will continue to reshape coal demand across Asia in the coming years.

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Staff Report
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