News and Articles

• Linfen low sulphur coking coal was quoted near 2,510 yuan per tonne on September 22
• Quasi first grade metallurgical coke averaged about 2,420 yuan per tonne on a dry quenched basis
• Shanxi mine production restarts moved slower than official targets on safety and compliance rules
• Steel mills resisted further coke price hikes after five straight rounds of increases in September
• Pre National Day holiday restocking stayed measured, with a wider correction risk into October

Chinese coking coal and coke markets moved through the second half of September 2026 with softer prices, a fragile balance between constrained supply and cautious downstream buying, and rising concern about the shape of the market once the National Day holiday break passes. By September 22, benchmark Linfen low sulphur coking coal was quoted at about 2,510 yuan per tonne, down slightly from the roughly 2,550 yuan per tonne level seen on September 16. Quasi first grade metallurgical coke on a dry quenched basis averaged around 2,420 yuan per tonne on both dates, holding steady after five consecutive rounds of price increases earlier in the month.

The coking coal side of the chain has been shaped by uneven supply recovery. Mine production restarts in the main Shanxi producing region have moved more slowly than the government's own targets, held up by strict compliance and safety inspections following incidents earlier in the year. At the same time, several online coal auctions failed to clear at asking prices in the second half of September, pointing to softer demand from coke producers and steel mills. Market participants said that pre holiday restocking was providing some support, but that a wider correction cannot be ruled out once buyers step back after the National Day break in early October.

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The coke chain moved on its own set of pressures. After five successive price hikes earlier in September, coke producer losses had narrowed, drawing more supply back into the market. Yet steel mills, running at high hot metal output on the back of healthy blast furnace schedules, were themselves loss making on many product lines and pushed back on further coke price increases. Traders described the interaction as an increasingly tense negotiation, with coke sellers arguing that raw material costs justified higher prices and steel buyers pushing for a rollback.

The wider industrial demand story added to the caution. Downstream steel demand from real estate and general infrastructure stayed sluggish through the third quarter, and mill profits stayed under pressure. Restocking activity ahead of the holiday was measured rather than aggressive, keeping the balance between coking coal, coke, and steel finely poised.

For procurement teams in steel, chemicals, and industrial fuel sectors, the near term action is to secure October and early November coke and coking coal cover before any post holiday demand shift redirects flows. Coke buyers should lock in September and early October volumes at current spot values before mills push for a rollback in bilateral negotiations. Coking coal buyers dependent on imported Australian or Mongolian material should stress test fourth quarter cost models against a scenario where Shanxi domestic supply stays constrained and seaborne prices firm on renewed Chinese demand.