Russian metallurgical coal prices rise 21–31% in July as available supply tightens

Producers lift domestic prices

Russian metallurgical coal producers raised domestic prices by 21–31% month on month in July, bringing quotations to 8,250–11,500 rubles per tonne depending on the grade. The figures were published in a NEFT Research review cited by Kommersant.

Prices for four grades—KS, GZh, OS and Zh—were approximately 9–22% above their levels a year earlier. Premium K-grade coal was an exception: its price remained 2.5% below the level recorded in July 2025. The difference shows that the recovery has varied by coal quality rather than lifting every segment equally.

Consumer regions face higher quotations

In the main consuming regions—the Altai Territory and the Kemerovo, Chelyabinsk and Lipetsk regions—July quotations increased by 16–20% from the previous month to 11,800–14,400 rubles per tonne. Despite the sharp monthly rise, prices at these delivery bases remained approximately 1–2.6% below year-earlier levels.

The regional figures are particularly relevant for steelmakers and coke producers because they reflect the cost of coal closer to industrial consumers. The gap between producer quotations and prices in consuming regions also incorporates differences in grade, delivery basis and logistics. A rapid monthly increase at both levels points to broader pressure across the domestic supply chain.

Steel demand and exports support the market

NEFT Research attributed the increase to stronger demand from the metallurgical industry, a shortage of freely available volumes and the presence of an attractive export alternative. Together, these factors gave coal suppliers more room to raise domestic offers. Kommersant reported that coal companies contacted for the story did not provide comments.

Export indicators show why overseas sales are competing with the domestic market. The price of Zh-grade coking coal at Russia’s Far Eastern ports increased by 17.3% from the beginning of the year through July 10, reaching $156 per tonne on an FOB basis. Compared with a year earlier, the quotation was 57.6% higher.

At the FOB Gulf of Finland basis, the same grade was priced at $123 per tonne. That represented an increase of 4.1% from January and 25.8% year on year. The stronger annual gain at Far Eastern ports suggests that the value of the export option differs substantially by route, although the source did not provide destination-level trade data or shipment volumes.

For Russian steelmakers, the July increase raises the cost of a core blast-furnace input at a time when available spot volumes are limited. Coal producers benefit from firmer domestic quotations and stronger export benchmarks, while buyers must balance immediate procurement needs against prices that have risen quickly within one month. The next direction of the market will depend on metallurgical demand, the availability of uncommitted coal and whether export netbacks continue to support sales outside Russia.