BREAKING: China’s steel mills asked to stop importing Australian coal – sources

Chinese power plants and steel mills have been asked by the authorities to stop importing thermal and coking coal from Australia, sources told Fastmarkets on Monday October 12.

Utilities companies and steel mills were verbally notified during the Golden Week holiday (October 1-8) in China to stop importing Australian coal this year with immediate effect, sources said.

State-owned steel mills such as Anshan Iron & Steel and Benxi Iron & Steel in northeastern China were among those that received the instructions, sources said. 

A  trader source said that compliance with the order would result in a loss of demand for Australian coking coal, which would then exert downward pressure on seaborne coking coal prices, especially for premium low-volatility hard coking coal. 

In the premium mid-vol hard coking coal sector, prices are more resilient due to strong demand from India. 

“I need to wait and see how steel mills react and the corresponding effects on the seaborne markets though,” he added.

“No steel mill will import Australian coking coal at this point, so it’s difficult to estimate prices now,” another trader source from China said today. 

Fastmarkets’ premium hard coking coal, cfr Jingtang index stood at $141.15 per tonne on October 9, which was down by $3.95 per tonne compared with the previous day. 

Power plants have also been asked to halt the imports of Australian thermal coal, a buyer source based in Australia said on Friday. 

It is unclear why the Chinese authorities have decided on this course of action, but Australia has been one of the most vocal and early advocates of an independent investigation into the origins and early handling of the coronavirus outbreak, a stance that has attracted strong pushback from China.

What to read next
The playing field for global iron ore brands could be poised to be leveled, given a recent announcement on lower iron content in a key mainstream Australian direct shipping ore, iron ore market participants told Fastmarkets, adding that the development could narrow the price disparities between major Australian mid-grade iron ore brands.
The graphite industry in 2025 faces major challenges, including trade wars, high US tariffs on synthetic graphite and policy changes affecting EV manufacturing and tax credits. Low natural graphite prices, oversupply and slow EV growth make diversifying supply chains essential for market stability.
Soybean futures on the Chicago Mercantile Exchange held broadly steady in the front end of the curve on Thursday May 29, while contracts for farther delivery months faced some downward pressure.
The Chinese steel market is expected to remain reliant on export-led growth for the rest of 2025, amid poor domestic consumption and a lack of investor confidence in the property sector, delegates were told at the Singapore International Iron Ore Forum on Wednesday May 28.
Due to the reduced liquidity in that market linked to the combination of seasonal demand patterns and the implementation of cross-border import tariffs between the US and China, Fastmarkets proposes to assess AG-SYB-0005 Soybean CFR China (US Gulf) $/mt and AG-SYB-0006 Soybean CFR China (US Gulf) Premium c$/bu based on its assessments for AG-SYB-0020 Soybean FOB US Gulf $/mt and AG-SYB-0021 Soybean FOB […]
Fastmarkets has decided not to proceed with the proposed amendment to the name and specifications of the MB-IRO-0008 iron ore 62% Fe fines cfr Qingdao index. After a consultation period, Fastmarkets has determined that current circumstances do not make the proposed amendments to the index viable. Fastmarkets reserves the right to start a fresh consultation on […]