BEIJING: China’s coal imports rose to a seven-month high in July, General Administration of Customs data showed on Wednesday, as traders took contracted cargoes to coincide with China’s peak power demand season, when hot weather drives up air conditioning use.

China imported 46.21 million metric tons of the fuel last month, up 18% on the year and the highest since December’s record high of 47.3 million tons, exceeding analysts’ expectations.

However, two China-based traders, who declined to be named as they were not authorised to speak to the media, said actual coal demand was not as strong as imports would suggest despite heatwaves across China in July and August.

Much of the shipments, taken on the basis of previously signed long-term contracts, were being stockpiled at ports, they said.

“Last year, everyone had good expectations and signed many import contracts. As long as imported coal has a certain price advantage, downstream purchases will still be maintained,” said Victor Huang, a market analyst with Guangzhou Zhiliao Technology Development.

“Importers have stockpiled a lot of goods and are pushed to sell at a loss, so imports continue to be stable month-on-month.”

China has registered several days of extreme heat in June and July, supporting power demand as consumers turn up their air conditioning to stay cool.

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In response, to ensure a secure supply of energy as the hot weather lingers, Shendong Coal, a subsidiary of miner CHN Energy Group, is making more capacity available at three mines and 11 coal preparation plants, state radio reported late on Tuesday.

But China’s thermal power generation fell in May and June as hydropower generation surged, according to NBS data.

In the first six months of the year, commercial coal consumption fell 1.4% to 2.29 million tons, according to industry association the China Coal Transportation and Distribution Association.

For the January to July period, China’s imports stood at 296 million tons, up 13.3% from the year-ago period.