Australia shipped 40.2 million tonnes of metallurgical coal in the September quarter, the highest for that period since 2021, S&P Global data show. Producers flagged higher diesel costs as a headwind.
Q3 2026 exports of 40.2 Mt were up about 5.5% on the year but down about 8.4% from the June quarter's 43.9 Mt.
Higher diesel prices and a stronger Australian dollar are lifting costs, so export tonnes do not translate directly into margins.
Next quarterly production reports, realized prices, diesel expenses and demand from China, India and Southeast Asia.
Australia shipped 40.2 million metric tonnes of metallurgical coal in the September quarter of 2026, the largest volume for that quarter since 2021, according to S&P Global Commodities at Sea data reported by Platts SBB Steel Markets Daily.
The total compares with 38.1 million tonnes a year earlier and 43.9 million tonnes in the June quarter. On rounded figures, that is a rise of about 5.5% on the year and a fall of about 8.4% on the quarter. S&P Global recorded 129.3 million tonnes of Australian metallurgical coal exports for 2026 through 26 October. The series is based on vessel tracking rather than final customs data, and loading dates can affect quarterly comparisons.
Better sales conditions, higher costs
Several producers reported improved market conditions. Coronado Global Resources said Australian production and exports recovered in the period, while supply problems in other exporting regions limited competing growth. Whitehaven Coal cited restricted coking-coal supply from China's Shanxi region and constraints on flows from Mongolia. These are company assessments of market drivers.
Costs are moving the other way. Yancoal Australia said higher diesel prices had returned as a headwind and could push operating costs toward the upper end of its 2026 guidance. Coronado lifted its fiscal 2027 cost guidance from A$88-96 per tonne to A$105-110 per tonne. Its interim CFO attributed about A$5 per tonne of the change to lower volumes and about A$7 per tonne to a stronger Australian dollar and higher diesel prices combined.
Uneven demand across destinations
S&P Global described demand as mixed across major steel-producing regions. Yancoal said Chinese import demand strengthened in the quarter, while Indian buyers stayed cautious during the monsoon season and drew on inventories. It also noted improved demand in parts of Southeast Asia and pressure on South Korean steel output.
Over a longer horizon, the Office of the Chief Economist's September 2026 Resources and Energy Quarterly forecasts metallurgical coal export volumes rising to 164 million tonnes in fiscal 2028-29, then easing to 160 million tonnes in 2029-30 and 158 million tonnes in 2030-31. It expects real export earnings to fall from A$44 billion in 2026-27 to A$36 billion in 2030-31.
Next quarterly production reports, realized prices and diesel cost disclosures should show more about producer profitability than shipment volumes alone.
Source: S&P Global Commodities at Sea data, as reported by Platts SBB Steel Markets Daily; Office of the Chief Economist, Resources and Energy Quarterly, September 2026. Summary and wording by Megawise.
Photos: Photo: Kriscmay, CC BY-SA 3.0, via Wikimedia Commons
← All Market Watch stories
