Seaborne Coking Coal Market Remains Strong Amid Rising Demand & Supply Constraints

At Neo Metaliks, we’re not just leading pig iron producers—we’re your trusted source for clear, concise steel market updates. We deliver insights with simple yet authentic storytelling that explains not only what’s happening, but also why it matters, how it affects the industry, and what could come next. Our goal is to make complex market sentiments easy to grasp for everyone, without losing the depth or credibility of the information.

Today, we are going to talk about the continuous positive trend in the global coking coal market, factors behind price hikes and the future market outlook.

Coking Coal Overview

Coking coal (metallurgical coal) is a type of bituminous coal with special properties that allow it to be converted into coke. When heated in the absence of oxygen at high temperatures (around 1,100°C), it leaves a hard and porous material called coke. Coke is essential for steel production as it acts as a fuel providing intense heat to melt iron ore. Also, it is used as a reducing agent that chemically removes oxygen from iron ore to produce molten iron.

Australia, Russia, Canada, United States, Indonesia and Mongolia are among the top coking coal exporting countries. On the other hand, India is the largest importer of Australian coking coal for its expanding steel industry. However, China’s demand for seaborne coking coal might reduce due to declines in domestic steel production.

Recently, the seaborne coking coal market was showing a continuous positive trend amid optimistic coal futures. Let’s take a closer look at the current situation in the seaborne coking coal market.

Seaborne Coking Coal Market Remains Optimistic amid Firm Demand, What Lies Ahead?

Market Analysis

China is the biggest steel producer in the world and one of the major importers of coking coal. It also consumes a large amount of its own coking coal mined within the country. In the recent days, Chinese coking coal futures noticed an upward moment and hence prices remained elevated not only in China but also in the seaborne coking coal market.

Currently, The Chinese steel industry is going through production cuts due to strict environmental policies imposed by the government. The country’s coal production has also been impacted due to this. Moreover, halts and operation disruptions in coal mines put limits to the country’s coal output. However, demand remained firm amid active buying by local coke producers.

Meanwhile, coking coal futures in the Singapore Exchange (SGX) hiked up by 5% m-o-m reaching the levels of $183.83. Also, the SGX met coke futures remained elevated throughout the month reaching at $ 222.60 (surge by 7%).

 India, the world’s second-largest steel producer and a major consumer of coking coal, is witnessing strong price trends due to supply challenges. Prices of Australian premium hard coking coal (PHCC) stood at $207/ton on a CNF India basis, showing a 7% rise m-o-m and a 3% increase w-o-w.

At the same time, India’s coking coal imports recorded a sharp rise. Imports jumped 24% m-o-m to 6.7 Mnt in July 2025, compared to 5.4 Mnt in June. The surge came mainly from Australia and Russia, supported by smoother vessel discharge at ports and fresh restocking by leading steelmakers. This highlights the rapid pace of capacity expansion in the Indian steel industry, which is fuelling stronger raw material demand.

Higher domestic offers for PHCC are largely driven by the increase in met coke prices. The rise in raw material costs, combined with Chinese met coke price hikes, added to bullish market sentiment. Additionally, Chinese coal futures have also played a role in influencing India’s domestic coking coal market, keeping overall prices elevated.

In the global market, Australian PHCC prices were around $191/ton FOB, increased by $5 compared to last week. This price hike is supported by firm demand from Asian buyers and limited vessel availability. For Indian buyers who depend heavily on imports, these factors mean procurement costs remain high.

Outlook

Coking coal prices are expected to stay firm in the near term, supported by strong Asian demand, Indian steel industry expansion, and Chinese supply disruptions. Limited vessel availability and rising met coke costs will likely keep procurement costs elevated.

Recent Posts

  • How India’s Steel Growth Is Quietly Rewriting the Rules of Global Coal and Coke Trade

    At Neo Metaliks, our metallurgical operations provide a ground-level perspective on how India’s expanding steel capacity is reshaping global trade. Beyond producing high-grade pig iron, we deliver clear, data-driven intelligence on the upstream raw material flows that fuel our industry—from shifting coking coal supply lines to evolving metallurgical coke trade routes across Asia. We cut […]

  • India’s Steel Capacity Expansion Target to Accelerate Raw Material Demand Through 2047

    At Neo Metaliks, we’re not just leading pig iron producers but also delivers clear and reliable steel market updates — breaking down complex industry trends into simple and credible insights. India is preparing for a major expansion of its steel industry, with the capacity targeted at 600 million tonnes per year by 2047 (compared with […]

  • India’s Green Steel Supply Is Ready; Demand Will Determine the Next Growth Phase

    India’s green steel industry is reaching an important stage. The country has already developed a sizeable supply base, and the key challenge is now shifting from production to demand creation. According to Council on Energy, Environment and Water (CEEW), as of 31 March 2026, around 89 steel producers had received green steel ratings, covering 12.34 […]

Categories