Global prices for coking coal fell in early March

Despite mounting tensions over energy prices, the global coking coal market remained generally stable in early March.

According to Kallanish, the price of high-quality coking coal FOB Australia stood at $218.4/t as of March 6, 2026, having fallen by 14.6% over the month (compared to February 6). Compared to the previous week (February 27), it decreased by 8.7%.

Spot prices for coking coal in China (EXW, Anze) on the same date stood at $211.6/t (-6.5% compared to February 6). Compared to February 27, they fell by 7.8%.

Currently, the seaborne coking coal market is being driven by factors such as the high availability of cargoes for April shipments and weak demand from Chinese steel mills. At the same time, the escalation of the conflict in the Middle East has led to higher shipping costs from Australia to Asia. Traders hold differing views on logistics. Some believe that shipping costs will continue to rise, and buyers will consider delaying shipments. Others are convinced that sellers will absorb these costs.

Although the main coking coal flows do not pass directly through the Strait of Hormuz, military actions in the region have led to an increase in bunkering premiums, war risk insurance, and freight rates in the main dry bulk cargo segments, notes ArgusMedia, citing market participants.

As for the Chinese domestic market, coking coal prices there declined between February 27 and March 6. Mining operations in the country are resuming following the official end of the Chinese New Year (February 23), while pig iron output is decreasing. Chinese steel mills are facing low margins, and the modest GDP growth target for 2026, announced by Beijing earlier this month, failed to boost market sentiment.

In addition, in late February, Chinese steel mills implemented the first round of coke price cuts of approximately 50–55 yuan. Coke inventories at coking plants have risen significantly, even though production has declined.

According to Mysteel Global forecasts, domestic demand for coking coal in the country in March will lag behind the rapid recovery of its supplies, so weak fundamentals are likely to continue to negatively impact the market for this raw material.

BigMint notes that the short-term outlook for the global coking coal market will depend on factors such as the recovery of steel demand in China following seasonal slowdowns, the dynamics of freight costs, and the availability of cargo from Australian and North American producers.

As a reminder, in February, the rise in Asian coking coal prices observed since the beginning of the year slowed amid stabilizing supplies from Australia and the holiday season in China.

As reported by GMK Center, average annual coking coal prices in 2025 saw a significant decline compared to the previous year, reflecting weak market conditions and softening consumer demand, which increased pressure on suppliers.