Australian premium hard coking coal averaged $236/t FOB in the first seven months of 2026, up 25% year on year, driven by supply disruptions in Australia, slower-than-expected production ramp-ups at new mines, the Middle East conflict and the Shanxi coal mine accident in China. India relies on imports for around 95% of its coking coal requirements, with Australia supplying at least half. For blast furnace-based steelmakers, every $10/t increase in coking coal prices is estimated to add around 7–9/t to steelmaking costs. Indian mills have limited ability to pass the higher costs through to steel prices because lower-priced Chinese steel continues to constrain domestic price increases. Meanwhile, India’s coking coal imports are forecast to rise by 2–3 Mt from 64 Mt in the previous fiscal year to approximately 66–67 Mt in 2026–27.

This week, ferrous metals trended mostly higher, with performance varying slightly among varieties. Coking coal and coke were the strongest performers, while iron ore and finished steel posted relatively limited gains. During the week, safety supervision remained stringent, the pace of production resumptions at coal mines fell short of expectations, and structural shortages of coking coal grades further deepened, leading coking coal futures to continue rising. Coking plants suffered heavy losses...

[SMM Coking Coal and Coke Daily Review] Coking Coal Market: Linfen low-sulphur coking coal quoted at 2,070 yuan/mt. Coking coal side, coal mine production resumptions are still constrained by strict safety supervision, and supply remains tight. Currently, most coal mines have low inventories, and the structural shortage of high-quality resources remains unchanged. In the online auction market, low auction failure rates coexist with high premium transactions. Next week, the coking coal market may continue to hold up well. Coke Market: Quasi-first-grade metallurgical coke - dry quenching nationwide average price is 1,925 yuan/mt. Supply side, currently, the loss range of coke enterprises has further expanded, leading to an escalation in the intensity and scope of voluntary production cuts. Actual coke production continues to decline, and with increasing downstream procurement demand, previously accumulated inventories are being consumed. Demand side, recently, steel prices have been consolidating and strengthening. Meanwhile, maintenance at steel mills' blast furnaces has ended successively, and daily average hot metal production is gradually increasing, which increases rigid coke consumption. Some steel mills have started to release restocking demand, accelerating the procurement pace. In summary, next week the coke market is expected to hold up well, and the expectation for the first round of coke price increase to be implemented is relatively strong.[SMM Steel]

Czech Republic-headquartered Sev.en Global Investments has agreed to supply Ostrava steelworks Nova Hut with square billet from its 7 Steel Nordic plant in Norway. The Ostrava mill plans to install an electric arc furnace with capacity of up to 1.5 million tonnes/year of crude steel, after its blast furnaces were decommissioned when the firm became insolvent under former owner Liberty Steel, and it has since been running as a re-rolling operation on a tolling basis. The company is also considering the possibility of supplying billets to Nova Hut from 7 Steel UK in Cardiff, Wales, though this remains only a potential option with no agreement reached, while pricing will depend on market conditions, mostly the price of scrap

[SMM Coking Coal and Coke Daily Brief] Coking Coal Market: Linfen low-sulphur coking coal is quoted at 2,070 yuan/mt. In terms of coking coal, coal mine production resumptions are still slow, safety inspections continue to be strictly enforced, coking coal supply is unlikely to increase, coal mines have a strong willingness to hold prices firm, the online auction market remains hot, prices of some coal types have risen, and the coking coal market may hold up well in the short term. Coke Market: The nationwide average price of quasi-first-grade metallurgical coke (dry quenching) is 1,925 yuan/mt. In terms of supply, coking costs have increased significantly, most coke plants are suffering severe losses, production enthusiasm is dampened, there are cases of expanding production restrictions, meanwhile coke plants' coke inventories have started destocking, and market bullish sentiment is heating up. On the demand side, earlier blast furnace maintenance at steel mills has been completed successively, these blast furnaces have entered the stage of production resumptions, coke rigid demand is supported, some steel mills are gradually accelerating their procurement pace, but steel mills' profitability is poor, and there is some resistance to coke plants' price increases. In summary, the cost of coal charged into the furnace has increased strongly, and coke rigid demand has increased, supporting market sentiment to recover, expectations for the implementation of the first round of coke price increases are strong, and the coke market may consolidate on a strong note in the short term.[SMM Steel]

Ukraine-based steel producer ArcelorMittal Kryvyi Rih said two people were killed and 13 employees and contractors were injured in a missile attack on its facility overnight, with the attack damaging the plant's main energy facilities and blast furnace production units. The plant was operational when the attack occurred, and production was partially halted as a result. Specialists are currently assessing the extent of the damage and the timeline for restoring operations. The company noted the plant was also hit by a missile attack in 2022, which destroyed a rolling mill workshop and killed one employee.

India’s expanding steel sector rests on an uneven raw-material base: abundant domestic iron ore and greater use of locally sourced scrap contrast with a deepening dependence on imported coking coal. Imports surged 15.2% to 66.33 Mt in FY2025-26, and official projections indicate they could meet nearly 86% of a 161 Mt requirement by FY2030, leaving mills exposed to volatile seaborne prices despite improving domestic washery efficiency.

According to SMM statistics, total construction steel inventory this period was 8.3259 million mt, down 217,100 mt MoM (-2.54% MoM), shifting from increase to decline. Both mill inventory and social inventory destocked to varying degrees. Social inventory destocking accelerated notably as arrivals dropped. With the dock closure now lifted, subsequent concentrated arrivals of construction steel may lead to social inventory accumulation.

[SMM Coking Coal and Coke Daily Briefing] Coking Coal Market: Linfen low-sulphur coking coal was quoted at 2,070 yuan/mt. Coking coal: The pace of mine production resumptions fell short of expectations, with high safety supervision intensity and production constraints at mines. Meanwhile, downstream procurement demand increased, market sentiment improved, mine shipments were smooth, online auction transactions mainly rose, and the coking coal market may hold up well in the near term. Coke Market: The nationwide average price of quasi-first-grade metallurgical coke (dry-quenching) stood at 1,925 yuan/mt. Supply side, coke enterprises’ feedstock coal costs kept rising, losses deepened, production cuts expanded, and overall coke output continued to fall. Meanwhile, expectations of coke price hikes strengthened, coke shipments were smooth, and some cokeries held back from selling in anticipation of price increases. Demand side, end-use demand expectations for steel improved, coupled with stronger expectations of production resumptions at some blast furnaces in certain regions, leaving room for hot metal output recovery and providing rigid support for coke. In summary, the market’s expectations for the first round of coke price hike grew, and the coke market may consolidate on a strong note in the near term. [SMM Steel]

[SMM Coking Coal and Coke Daily Brief] Coking Coal Market: Lin Fen low-sulphur coking coal was quoted at 2,070 yuan/mt. Coking coal side, some coal mines in Shanxi gradually resumed production, but overall safety supervision remained strict, mine production release was constrained, coking coal supply remained tight, some low-inventory coke plants began moderate restocking, shipments remained good after coal mines raised prices, online auction lots maintained a low failed-auction rate, the structural shortage of high-quality backbone resources remained unchanged, and the short-term coking coal market may consolidate on a strong note. Coke Market: The nationwide average price of quasi-first-grade metallurgical coke - dry quenching was 1,925 yuan/mt. Supply side, coking costs continued to increase, coke plant losses widened, and the production enthusiasm of some coke plants was dampened. Coupled with practical issues such as the structural shortage of coking coal, the scope of production cuts among coke plants continued to expand. Demand side, downstream steel mill profit margins remained under pressure, and some steel mills were cautious about purchasing, but most blast furnaces that had undergone maintenance earlier were preparing to resume production, driving an increase in hot metal production and providing a floor for coke demand. Overall, coking costs remained firm, coke fundamentals showed reduced supply and increased demand, imbalances continued to ease, and the short-term coking coal market may consolidate on a strong note.[SMM Steel]