Australia’s coking coal exports rose six percent month on month and 20 percent year on year in May 2026 to 13.2 million mt from 11.28 million mt in April. The improvement was primarily driven by higher procurement from key Asian steel-producing nations, improved cargo availability, and smoother port operations following earlier shipment disruptions.
On a cumulative basis, exports reached 59.08 million mt during January-May 2026, up four percent compared to 56.8 million mt in the corresponding period of 2025, reflecting resilient global demand for premium metallurgical coal.
Diverging import trends across key Asian markets
Import patterns among major buyers remained mixed, highlighting differing steel market dynamics and inventory positions. India’s imports declined sharply by 46 percent month on month to 1.81 million mt and were down 52 percent year on year, largely due to elevated imported coal prices, comfortable inventories at steel mills, and a decline in Indian steel prices.
Japan’s imports increased by 17 percent month on month to 2.51 million mt, supported by stable steel production requirements and routine restocking activity. South Koreas imports fell 24 percent month on month to 1.35 million mt and 15 percent year on year, reflecting cautious raw material purchasing amid subdued steel sector margins.
China emerged as the primary growth driver, with imports from Australia increasing by 114 percent month on month to 1.48 million mt and rising 77 percent year on year supported by stronger procurement activity, improved demand from end-users, and the competitive availability of Australian material.
Vietnam also recorded strong growth in imports, which increased by 31 percent month on month to 1.23 million mt and were up 48 percent year on year, supported by robust industrial activity and continued preference for Australian coal due to its reliable supply and quality. Meanwhile, Taiwan’s imports rose 35 percent month on month to 0.62 million mt and 17 percent year on year as buyers returned to secure cargoes amid firm price expectations.
Coking coal prices strengthen on tight spot availability
Australia’s premium hard coking coal prices increased by $5/mt month on month in April and $6/mt month on month during May 2026. The upward movement was supported by firm producer offers, tightening spot market availability, and higher vessel freights due to US-Iran geopolitical issues. Buyers gradually adjusted to higher replacement costs, while limited prompt cargo availability prevented any significant downward pressure on prices despite periodic resistance from end-users.
Port performance reflects mixed shipment dynamics
Export activity across Australia’s major coal terminals displayed varying trends, reflecting differences in vessel scheduling, maintenance programs, and cargo flow management. Dalrymple Bay Coal Terminal (DBCT) recorded a six percent month on month increase in shipments to 4.2 million mt, supported by steady loading operations and improved vessel turnaround times.
Gladstone and Hay Point reported strong growth, with exports increasing three percent and 19 percent month on month to 4.14 million mt and 3.79 million mt, respectively, reflecting higher cargo nominations and improved operational efficiency. In contrast, shipments from Abbot Point declined by 23 percent month on month to 0.81 million mt, likely due to shipment scheduling variations and lower cargo availability during the month.
Outlook
Australia’s coking coal exports are expected to remain supported by steady demand from China, Japan, Vietnam, and other Asian steelmakers, alongside expanding steelmaking capacity in Southeast Asia. Prices are likely to stay firm amid tight spot availability and potential supply-side disruptions. However, elevated coal costs and weak steel margins in key markets such as India and South Korea may temper buying interest, limiting significant upside in demand.
Source: BigMint
