The China Iron and Steel Association (CISA) released the October 2026 adjustment value under its coal–steel price linkage mechanism for long-term coking coal contracts on October 28. Calculated under the official linkage scheme, the value fell by 49 yuan per tonne from September, a month-on-month decline of 2.3%.

The indicator is directly linked to steelmakers’ raw material procurement costs under long-term agreements. Its decline reflects the latest outcome of pricing negotiations across the coal and steel supply chain and points to a lower adjustment value for October.

The most immediate potential effect is on procurement settlements for contracts that apply the linkage mechanism. Where the lower value feeds into settlement calculations, it could ease steelmakers’ coking coal purchasing costs. The effect on any individual buyer would depend on how its agreement incorporates the adjustment and the volume covered.

The distinction between the linkage adjustment and the final purchase price matters. A 49-yuan-per-tonne decline in this indicator does not by itself establish an equivalent reduction in every steelmaker’s overall coking coal costs. Nor does the 2.3% decrease establish the same movement in spot coal prices or steel production costs.

For subsequent assessments, the key questions are how the October adjustment is reflected in contract settlements and whether later CISA releases show the downward movement continuing. This release supports a narrower conclusion: the contractual pricing adjustment has moved lower for October, while the scale and persistence of any resulting cost relief remain dependent on contract application and subsequent changes.