Key facts
- Gladstone port, Australia's largest coking coal export hub, exported 69.6 million tonnes of coal in FY2025-26.
- Exports rose 8.3% year-on-year, driven by increased shipments to India and South Korea.
- South Korean coal procurement surged by 57.7% to 15.6 million tonnes, partly due to efforts to build stockpiles.
- Indian coal imports rose 7.8% to 12.7 million tonnes, aligning with its goal to double steel production capacity.
- Shipments to China fell 30.5% to 7.1 million tonnes due to high prices and competition from other suppliers.
Australian producers exported 69.6 million tonnes of coal from Gladstone port, the nation's largest coking coal export hub, during the financial year July 2025 to June 2026. This marks an 8.3% increase from the previous year, driven by robust demand from India and South Korea that compensated for reduced shipments to China and Vietnam.
The outlook for Australian coking coal exports in 2026 is positive, supported by favorable demand and price expectations. An anticipated El Nino event is expected to bring dry conditions to Queensland, potentially aiding supply by minimizing rain-related disruptions.
Shipments to South Korea saw a significant rise of 57.7% to 15.6 million tonnes. This surge is attributed to South Korea's efforts to bolster its coal stockpiles in early 2026, particularly in response to the US-Iran war. Data indicates substantial increases in April and May 2026 compared to the prior year. Contributing to this demand, South Korea's finance ministry established a 400 billion won ($277.48 million) export supply chain guarantee fund for its steelmakers in November 2025, further supported by increased demand from the automotive sector.
India's demand for coking coal also grew, with shipments from Gladstone increasing by 7.8% to 12.7 million tonnes. Despite Indian steelmakers previously favoring cheaper alternatives from Russia, Mozambique, and the US, the country's seaborne coking coal demand is projected to escalate as it aims to double its steel production capacity by 2030 and reach 500 million tonnes per year by 2047.
Conversely, Gladstone's coal shipments to Vietnam declined by 6.2% to 3.8 million tonnes. However, the Australian government's commodity forecaster, the Office of the Chief Economist (OCE), anticipates medium-term growth in steel demand across India and Southeast Asia, fueled by urbanization, population growth, infrastructure projects, and expansion in steel-intensive manufacturing.
Shipments to China decreased by 30.5% to 7.1 million tonnes. Chinese steelmakers have reduced their demand for Australian coking coal due to high prices and supply concerns, opting instead for more competitively priced coal from Mongolia and Russia, which offers stable supply and logistics.
As of July 13, Argus assessed the price of hard coking coal fob Australia at $189.1 per tonne and premium hard low-vol coking coal fob Australia at $231 per tonne.