Nearly 100% Of China’s Anthracite Imports Originate In Russia

China’s import of anthracite (premium grade coal) reached an absolute record in March at 1.9 million tons, of which almost 100% came from Russia. The increase in supplies from Russia are due to the redirection of Novosibirsk coal from southern ports to Far Eastern ports, as well as a reduction in Chinese purchases of anthracite from the US and Australia due to tariff increases. Anthracite exports remain the most profitable for Russian coal miners, and if the current market situation persists, supplies will continue to grow.

Anthracite is a premium grade of hard coal with maximum thermal conductivity. It is sold as fuel with a fat content of over 8,000 kcal for power engineering and as pulverized coal fuel for metallurgy. According to the Russian Central Information Center, (CIC) due to the growth in anthracite and metallurgical coal supplies, total coal exports from Russia to China in March increased by 16% compared to February and 6% year-on-year, to 7.3 million tons. Overall, Russia exported 16 million tons of coal in March, and 46.4 million tons in Q1.

Russian Railways have also stated that 4.5 million tons of anthracite were shipped via the network in the first quarter of 2025, of which 3.9 million tons were exported. Year-on-year, the figures grew by 13.5% and 14.7%, respectively. Shipments in the eastern direction increased by 5.9 times, to 2.5 million tons, in the northwest, they decreased by 39%, to 1 million tons, and in the south, they grew by 8.3%, to 0.4 million tons.

The CIC explains the significant growth in anthracite exports from Russia by the redirection of Novosibirsk coal from southern ports to Far Eastern ports in Q1 2025 with subsequent shipments to China. The growth in demand for certain grades of Russian coal was facilitated by a reduction in imports from the US and Australia. According to the CIC, in March China reduced its coal imports from the US to 0.2 million tons against 1.3–1.4 million tons in January–February. Purchases of Australian metallurgical coal during this period fell from 1.2 million to 0.2 million tons.

In February 2025, China introduced a 15% duty on anthracite from the United States, with China’s overall increase in anthracite imports a signal that the country is gradually moving toward cleaner coals with the least amount of harmful emissions. Canada and South Africa are also major producers of anthracite, and this type of coal is also mined in Indonesia and Mongolia.

According to the CIC data at the beginning of May this year, Russian pulverized coal fuel on CFR China terms cost US$111-113 per ton. According to the Chinese Customs Administration, the average cost of importing Russian anthracite in March was US$118 per ton. The export netbacks for Russian exporters of this type of solid fuel in eastern ports are estimated by the CIC at US$31 per ton. Although the indicator has decreased by 45% since the beginning of the year, the profitability of anthracite deliveries to the east significantly exceeds the netbacks for thermal and coking coals.

Russian anthracite continues to be exported from the ports of the northwest and south to Turkiye and India, and these deliveries remain profitable even with a longer sea route.

An additional incentive for the growth of anthracite exports was the allocation this year of a quota for Sibanthracite for priority coal exports to the east by rail from Novosibirsk of 8 million tons.

Meanwhile, the dynamics of anthracite exports in the east will remain positive in April-May. While China can increase production of thermal coal, it cannot increase anthracite. If the cost of Russian anthracite on international markets does not increase – and there are no prerequisites for this yet – then the dynamics of exports of such fuel will be positive.