China is increasing its imports of coking coal following a mining accident in Shanxi

Chinese importers have turned to suppliers from Canada and Australia

Imports of coking coal into China are set to continue growing in 2026. The main reason for the increase in overseas purchases has been a reduction in domestic supply following a major accident at one of the mines that resulted in fatalities, according to industry traders. This is reported by Reuters.

Following the incident at the end of May, the authorities suspended operations at 155 coal mines in the northern province of Shanxi — the country’s largest coal-producing region — to carry out safety inspections. This triggered a sharp rise in domestic prices for coking coal, which is a critically important raw material for the steel industry. In search of alternative sources of supply, Chinese importers have turned to producers in Canada and Australia, with delivery dates in June and July.

According to monitoring data from the consultancy firm Mysteel, as of 17 June, around 64 per cent of the affected production capacity had already resumed operations. However, output volumes remain significantly below pre-accident levels.

Coking coal futures reached a 19-month high on 8 June, hitting 1,486.5 yuan per tonne, although prices have fallen slightly (by 5%) this week. The situation regarding the resumption of operations remains challenging: according to state media reports, an initial investigation has uncovered further safety breaches at the mines, so the government is determined to carry out the most thorough inspections possible.

Edwin Yo, a senior manager at the trading company Exen Resources, predicts that even after a full restart of operations, the market deficit will stand at between 20 and 30 million tonnes. According to him, this primarily concerns high-quality coal grades, which cannot be replaced by supplies from Russia or Mongolia.

China’s increased activity on the international market is intensifying competition for global resources. Junxing Zhang, a manager at the Indonesian metallurgical coke producer PT Kinrui New Energy Technologies, emphasised that companies from other countries find it difficult to compete with China for popular coal grades. As a result, his company is forced to source raw materials from regions where demand from China is lower, notably Colombia and the US, in order to optimise costs.

As reported by GMK Center, global coking coal prices rose at the end of May: market dynamics were altered by a fatal accident at a mine in the Chinese province of Shanxi. According to Kallanish, the price of high-quality coking coal FOB Australia stood at $239.4/t as of 29 May 2026, compared with $236.7/t a week earlier (22 May). Spot prices for coking coal in China (EXW, Anze) on the same date stood at $250.7/t, up 6% on the previous week.