Global prices for coking coal rose significantly in August due to increased demand in China against a backdrop of supply shortages.
According to Kallanish, the price of high-quality coking coal FOB Australia stood at $267.1/t as at 28 August 2026 (+22.2% compared with 31 July).
Spot prices for coking coal in China (EXW, Anze) on the same date stood at $357.1 per tonne, which is 20% higher than at the end of July.
Prices for Australian seaborne coking coal began to rise from the middle of the month due to a supply shortage in China, and this trend is continuing.
As Mysteel Global notes, China’s influence on seaborne prices for this raw material is likely to strengthen again this year, as domestic demand for premium cargoes is rebounding against a backdrop of production issues at the country’s own mines. According to experts, the market will remain sensitive to changes in the structure of Chinese supplies in the fourth quarter.
The current situation in the PRC has been caused by accidents at local mines, which have led to stringent safety inspections and a slower restart of coking coal mining operations. Furthermore, a reduction in imports from Mongolia has increased China’s reliance on seaborne shipments. In particular, the Chinese border port of Gancimaodu—a key transit point for Mongolian coal exports to China—stepped up environmental inspections of stockpiles at open-air storage sites towards the end of the month.
The impact of the surge in coking coal prices has spread beyond China. Indian steelmakers, for instance, have seen their profit margins shrink due to the rising cost of this raw material. At the same time, traders believe that domestic demand for coking coal will rise: buyer interest is set to increase as the monsoon season draws to a close. Furthermore, should supply restrictions remain in place, India and China may compete for coking coal, which will drive prices higher.
It should be noted that global prices for coking coal in early August showed mixed trends. In China, prices were supported by fears of a shortage of this raw material. At the same time, prices for Australian seaborne coking coal were falling during this period due to an oversupply and the availability of cargoes.
Courtesy : https://gmk.center/
