Coking Coal Market Overview
Coking coal is a critical raw material for the production of steel, the most utilised metal in the world and crucial for economic and social growth. Coking coal, also known as metallurgical coal, undergoes a specific process to transform into coke, which is vital for the blast furnace process in steelmaking.
Steel is used in almost every aspect of the world’s infrastructure, including buildings, bridges, rail systems and houses, as well as in motor vehicles and everyday white goods. It is also essential to electric vehicles and wind turbines and is a critical component of other low-carbon technologies such as hydro, solar and nuclear energy.
Coking coal is therefore recognised as an essential building block in the world’s transition to renewable energy and a low-carbon economy.
High-quality coking coals, such as Ovoot Coking Coal, are rare and vital for sustainable steel manufacturing, given high quality coke production relies on specific coal properties, influencing efficiency and reducing emissions in steel production.
Mongolian Share of Chinese Coking Coal Imports
In recent years, the quantity of coking coal imported into China has been increasing, and the Mongolian component within this has also been increasing year-on-year. This has largely been as result of focus and support from the Mongolian government to improve transportation infrastructure and port clearance systems to aid the efficient and cost competitiveness of Mongolian producers as part of broader post-COVID recovery efforts to stimulate export earnings. Mongolia is now supplies the most coking coal to China in comparison to all other nations.

Scarcity of Fat Coals
Fat coals, known for their unique properties, are a scarce resource but hold significant value in the steelmaking process. These coals enable coke producers to utilise a broader range of coking coals of varying quality in their coke oven blends, which enables use of more readily available and often cheaper coals without detriment to coke quality. Ovoot Coking Coal exemplifies the value of ‘fat’ coals, with its properties providing superior blending capabilities, which can enable the inclusion of lower-quality, and thus cheaper, coals in coke oven blends.
Target Market Demand
Increased global demand for high-quality coking coal, combined with underinvestment in new sources of supply, presents significant opportunities for Aspire.
Near-term events such as the supply disruptions in Australia, trade flow changes and sanctions on Russia continue to keep the coking coal markets volatile. Wood Mackenzie’s 2024 strategic outlook outlined consistent demand for metallurgical coal on the seaborne market, noting that “…a metallurgical coal supply response beyond the current global operating capacity is still required to meet demand from growing economies such as India”.
In the Chinese market, historical index pricing shows that when pricing is compared on the basis of equal or similar point of sale and terms of sale, that ‘fat’ coking coals are typically traded at prices similar to hard coking coals. The Fenwei Market Study (announced on 30 April 2024) forecast a 2025 price of US$244/tonne for Ovoot coal delivered across the border into Inner Mongolia.
A Sustainable Future
Coking coal remains vital for steel production, which underpins infrastructure development and global economic growth. Steel production is crucial to achieving the UN Sustainable Development Goals (SDGs), particularly Goal #1 (No Poverty) and Goal #7 (Affordable and Clean Energy). Wood Mackenzie forecasts a 15% increase in global steel production by 2050, reaching 2.2 billion metric tonnes.
Fat coking coals, known for their blending flexibility, are scarce but valuable in steelmaking. Their unique properties allow coke producers to use a wider range of lower-quality, more readily available coals without compromising coke quality. Ovoot Coking Coal exemplifies this, offering superior blending capabilities and cost efficiencies.
While electric arc furnaces (EAFs) are being developed to reduce carbon emissions, blast furnaces will still dominate steel production by 2050. Aspire’s high-quality Ovoot coking coal will contribute to more efficient and lower-emission steel production by enabling coke producers more flexibility when sourcing coke feed blends.
