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Queensland could also complicate a deal.

But weaker Japanese demand weighed on overall Australian hard coking coal exports.

De Tian Coking started production with its first coke oven on 28 August, with projected output for 2023 less than 1.3mn t.

Queensland coal shipments hit a 3½-year high in June, bolstered by increased throughput from Dalrymple Bay Coal Terminal and Gladstone ports.

United Kingdom resources firm, Contango Holdings Plc commenced production of coking coal at its Lubu Project in Matabeleland North at the back of heightened demand for the product on the local market.

US exports to China totalled 439,924t in February, more than trebling compared with a year earlier.

India's coking coal imports rose to a four-month high in January as competitive premium hard coking coal prices bolstered year-end buying interest.

Australia has brought on 12.3mn t/yr of coking coal production capacity in Queensland this year.