Jastrzębska Spółka Węglowa (JSW) reported a slight drop in coal production in the second quarter of 2026, while average selling prices for coking coal and coke increased significantly. The company attributes the price rally to supply disruptions in China after a mine accident in Shanxi province.
In Q2 2026, JSW produced 3.23 million tonnes of coal, a decrease of 0.3% quarter-on-quarter and 3.4% year-on-year. Coking coal output fell to 2.76 million tonnes, down 0.8% from the previous quarter and 2% from a year earlier. Thermal coal production, however, rose 2.5% sequentially to 0.47 million tonnes, but was still 11% lower than in Q2 2025.
Sales volumes showed a mixed picture. Total coal sales reached 2.97 million tonnes, up 1.1% from Q1 but down 0.9% year-on-year. Coking coal sales declined 3% quarter-on-quarter and 7.7% year-on-year, while thermal coal sales jumped 23.3% sequentially and 45.8% versus the same period last year.
Production decline amid price surge
Despite lower output, JSW benefited from rising prices. The average selling price of coking coal to external customers rose to PLN 767.40 per tonne ($209.84), up 6.2% quarter-on-quarter and 12.4% year-on-year. Thermal coal prices surged 31.2% sequentially to PLN 349.62 per tonne. Coke prices also increased, reaching PLN 993.58 per tonne ($271.69), a 7.6% rise from Q1.
– The price of coking coal was supported by limited supply in China following the accident at a mine in Shanxi province and increased imports of this raw material – JSW said in its operational update. The company also noted that global coke prices followed the upward trend, driven by higher Chinese coke quotations as domestic coking coal costs rose.
After the first half of 2026, the JSW group achieved 48.6% of its annual coal production plan, including 47.5% for coking coal and 56.1% for thermal coal. The company assured that no internal unexpected events affected production in Q2, with output slightly above the planned level.
Chinese factors and global market
JSW highlighted that a key factor shaping the global and European steel, coke and coking coal markets was the reduction of domestic coking coal supply in China. The mine accident in Shanxi triggered stricter safety controls that curbed production, leading to a spike in Chinese imports of coking coal. This helped sustain Australian coal quotations even as Indian buyers reduced spot purchases due to the onset of the monsoon season.
The company also observed a divergence in price trends for different coking coal grades. Premium hard coking coal enjoyed strong demand, while lower-quality coal faced a weaker market.
– There is no clear improvement in steel production in the EU despite the full implementation of CBAM charges – JSW noted. This suggests that European demand for steelmaking raw materials remains subdued, limiting the upside for JSW’s export sales.
Looking ahead, the Polish coal group expects continued volatility influenced by Chinese policies, global steel output, and the pace of the energy transition. The company’s exposure to coking coal – a key input for steel production – makes it sensitive to both geopolitical and industrial trends.
Źródło: WNP.PL, Fot. Jastrzębska Spółka Węglowa / Dawid Lach
