- Recovery driven by strong Chinese procurement
- Prices rise $9/t m-o-m on renewed buying interest
Australia’s coking coal exports registered a recovery in August 2025, rising 6% m-o-m to 12.46 million tonnes (mnt) from 11.74 mnt in July.
The rebound was primarily supported by stronger port performance at select terminals and increased demand from China, even as shipments to other traditional buyers contracted.
Jan-Aug’25 volumes highlight persistent contraction
Despite the August upturn, cumulative exports during January-August 2025 stood at 96.6 mnt, reflecting a 4% y-o-y decline from 100.9 mnt in the same period of 2024. This contraction underscores persistent weakness in global steel demand and cautious procurement across Asia.
China offsets declines in key Asian markets
Export flows revealed sharp declines across several major destinations. Shipments to India dropped 18% m-o-m to 2.5 mnt, while Japan saw an 11% fall to 2.72 mnt. Imports by Vietnam slumped 32% to 0.54 mnt, and South Korea recorded a steep 43% contraction to 1.25 mnt.
Conversely, China provided critical support, with imports soaring 75% m-o-m to 0.82 mnt. The surge was driven by stronger demand from Chinese mills and firmer met coke margins, which encouraged higher procurement of seaborne coking coal.
Port performance shows mixed momentum
Australian coal terminals displayed mixed trends in August 2025. Dalrymple Bay Coal Terminal (DBCT) saw shipments rise 16% to 3.39 mnt, supported by steady vessel arrivals and firm Chinese demand. Hay Point posted a sharper 22% increase to 3.01 mnt on improved mine dispatches and operational efficiency.
In contrast, Gladstone Port recorded a 10% fall to 4.05 mnt amid weaker Indian and Japanese demand, while Abbot Point slipped 6% to 1.12 mnt on lower South Korean intake. Newcastle Port registered the steepest drop of 37% to just 0.08 mnt, reflecting limited cargo allocation and weaker appetite for lower-grade coal.
Port Kembla, however, emerged as the outlier, with exports surging 216% to 0.26 mnt, driven by higher metallurgical coal shipments to niche buyers.
Prices rise amid renewed buying interest
Coking coal prices in Australia rose by $9/tonne (t) m-o-m in August 2025. The price increase was supported by improved Chinese buying activity and stronger met coke realisations, which boosted sentiment across the seaborne market.
Outlook
Australia’s coking coal exports face pressure from weak steel output in Japan and South Korea, but steady Chinese demand and restocking may offer support. Stable port operations remain key, with prices expected to hold firm yet sensitive to Asian steel market trends.
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