July 9, 2026 - Mongolian coking coal has become a core, cost-efficient component in China’s metallurgical coal mix, especially for inland steel hubs, and is projected to see record import volumes in 2026.

Market Position and Growth

China imported 60.07 million metric tons of Mongolian coking coal in 2025, accounting for 51% of its annual metallurgical coal imports. Analysts expect this to rise to 80 million metric tons or more in 2026, driven by:

• Persistent cost advantages over domestic and seaborne coal

• Structural blending demand in Chinese coke production

• Tightening domestic supply after safety inspections

Mongolia has overtaken Australia as the largest coking coal supplier to China, with its share of imports jumping from 26% in 2021 to 53% in 2023.

Role in Blending and Steelmaking

Mongolian coking coal is low in ash and sulfur, making it ideal for blending with higher-sulfur domestic coals from Shanxi and Hebei. This allows coke producers to:

• Maintain coke quality

• Reduce production costs

• Meet blending requirements for inland steel plants

It is classified as a Tier-2 hard coking coal, complementing rather than directly competing with domestic or Russian coal.

Supply Chain and Logistics

Improved transport infrastructure has boosted Mongolian coal imports:

• Expanded road links and more truck lanes at border ports

• Streamlined customs clearances

• Rail connections from major deposits like Tavan Tolgoi to the Chinese border

These measures have reduced logistical bottlenecks and facilitated record shipments, including a 12.56 million-ton surge to the largest Mongolian coal port, Ganqimaodu, in Q1 2026.

Competitive and Geopolitical Context

Russia, China’s second-largest coking coal exporter, faces challenges such as tariffs, rising costs, and sanctions, prompting ongoing talks to remove a 3% import tariff. Mongolian coal’s competitive pricing and reliable land-based supply make it a strategic alternative.

Outlook

With urbanization, infrastructure growth, and steel demand in China and India, Mongolian coking coal’s role in the steel supply chain is set to expand. Its blend-friendly quality, cost efficiency, and improved logistics position it as a cornerstone of China’s metallurgical coal strategy in the coming years.