- Chinese coke producers push through 8th round of domestic price hike
- Met coal remains resilient amid firm pricing and selective buying interest
While thermal coal markets across Asia remain subdued, the metallurgical coal and coke market continues to display resilience.
Tight coking coal supply in China, prolonged mine safety inspections and another round of domestic coke price increases have strengthened market fundamentals. At the same time, India’s Rashtriya Ispat Nigam Ltd (RINL) has entered the market with a 300,000-tonne import tender, reinforcing demand expectations for the second half of the year.
The market remains characterised by tight supply, firm prices and cautious but improving buying interest, with sellers maintaining the upper hand.
Chinese supply remains constrained
The primary driver behind the strength in metallurgical coal and coke prices continues to be restricted supply from China.
June is China’s annual Safety Production Month, during which inspections across Shanxi and other major coal-producing provinces have intensified. Several mines continue to operate below capacity or remain temporarily suspended.
Market participants report that production recovery has been slow even at mines that have resumed operations, with many operating at only 50-70% of normal capacity.
The result is continued tight availability of premium low-volatility coking coal, supporting both domestic and imported material.
Coke producers push through another price hike
Chinese coke producers have implemented an eighth consecutive round of domestic price increases, with major steel mills in Hebei and Shandong accepting increases of approximately RMB 50-55/t, effective 22 June.
The sustained price increases reflect:
- Tight coking coal supply
- Healthy producer margins
- Limited availability of export cargoes
- Stable demand from domestic steel mills
Export prices have responded accordingly, with North China coke assessments increasing by $7/t across major grades.
China continues to attract premium coking coal
Chinese buyers continue to prioritise prompt cargoes of premium hard coking coal due to tight domestic availability.
Market participants report that imported premium Australian coal remains competitive against domestic Chinese material, encouraging buying interest despite elevated prices.
Indian steel producers, by contrast, continue to adopt a more measured procurement strategy amid softer steel margins.
Atlantic market remains mixed
The Atlantic metallurgical coal market presents a more balanced picture.
Coking coal prices on 22 June 2026 remained mixed across key international markets. Low Vol HCC FOB USEC was assessed at $193/t, while High Vol A and High Vol B FOB USEC prices stood at $160/t and $150/t, respectively. Premium Low Vol Hard Coking Coal on a CFR North West Europe basis was reported at $265.2/t, reflecting regional variations in demand, quality premiums, and market conditions.
High Vol A coal has strengthened on improved Atlantic demand, while Low Vol material remains under pressure from limited Indian buying.
The divergence highlights differing regional procurement strategies rather than any broad deterioration in fundamentals.
Supply risks elevated
Although the market remains firm, participants continue to monitor several key risks.
The most important is the duration of Chinese safety inspections. Any meaningful recovery in domestic coking coal production during July could increase supply and moderate prices.
Conversely, continued production restrictions, combined with Indian import demand and stable Chinese steel production, could tighten the seaborne market further.
Takeaway
Metallurgical coal continues to outperform thermal coal because its fundamentals are being driven by supply constraints rather than demand weakness.
Chinese safety inspections have restricted coking coal availability, allowing coke producers to successfully implement another round of price increases and keeping premium hard coking coal prices well supported.
Unlike thermal coal, where buyers are delaying purchases in anticipation of lower prices, the metallurgical coal market continues to be characterised by limited supply, firm producer pricing power and selective but steady buying interest.
Unless Chinese production normalises quickly, the market is likely to remain well supported through the remainder of the quarter.
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