Japan, once the dominant importer of thermal coal globally with imports exceeding 100Mt a year, is expected to see its import volume fall below this threshold for the first time since 2010. Despite this decline, AME expects Japan to remain the world’s third-largest importer of thermal coal, accounting for 15% of global demand in 2024.
In the first four months of the year,
Japan’s thermal coal imports decreased by 8% on-year to 32Mt. Australia remains
the largest supplier, providing 24.5Mt year-to-date. This reliance is not
surprising given the close proximity and the high quality of Australian coal.
Japan has consistently been a key importer of high-quality Australian thermal
coal. Japan's thermal coal demand reached 119Mt in 2021 and has been declining
by around 8% each year through to 2024.
Japanese power utilities are known for
their stringent coal quality requirements. They generally prefer to purchase
high-calorific-value thermal coal, with sulphur and ash levels consistent with
or below the Newcastle 6,300 kcal/kg GAR benchmark, as their power plants are
designed around these specifications. Consequently, Hunter Valley’s thermal
coal product is well suited to the Japanese market.