Steel Firm Enters Mongolia-China Coal Trade
Commodity traders should note the deal commits volume without fixed unit prices, leaving pricing to be set batch by batch.
Updated on Nov. 2, 2026 in International Trade
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Luda Technology Group Limited, a manufacturer and trader of stainless and carbon steel flanges and fittings, announced it has entered the Mongolia-China thermal coal trading business. The company acts as intermediary, committing 440,000 metric tons of Mongolian coal across two Chinese customers, with no fixed unit price set.
Why it matters
The move is a diversification play by a steel-fittings firm into commodity intermediation, a shift that trading and procurement operators should weigh against the risks of entering an unfamiliar market. Pricing is deferred to market conditions and confirmed batch by batch, which leaves margin and settlement exposure open.
The announced commitments total 440,000 metric tons of thermal coal, 220,000 metric tons per Chinese customer, with 20,000 metric tons per customer due by November 30, 2026 and a further 200,000 metric tons per customer due by October 14, 2027. The company has not disclosed unit pricing or total contract value.
The players
Luda Technology Group Limited
A manufacturer and trader of stainless steel and carbon steel flanges and fittings, now extending into commodity intermediation.
Ma Biu
Chairman and Chief Executive Officer of Luda Technology Group Limited, leading the company's move into coal trading.
The details
Luda sources thermal coal from a Mongolian supplier in Tsogttsetsii, South Gobi Province, and sells it to two Chinese customers as the trading intermediary. Quantity commitments are set now, while prices are left to be confirmed before payment and shipment of each batch. Luda intends to establish procedures for quality testing, weight verification, and settlements as the trade proceeds.
Timeline
November 2, 2026: Luda announces its entry into Mongolia-China coal trading.
November 30, 2026: Initial 20,000 metric ton per customer delivery deadline.
October 14, 2027: Additional 200,000 metric ton per customer supply deadline.
Market Landscape
Mongolian thermal coal moving to Chinese buyers is a long-established commodity corridor, and Luda's entry adds an intermediary from outside the energy sector. The move mirrors diversification by industrial firms seeking trading revenue beyond their core manufacturing base.
Operators in trading and procurement should note that intermediary deals without fixed pricing shift price and settlement risk onto each batch. Businesses considering a similar move should review quality-testing, weighing, and payment-terms procedures before committing volume.
The takeaway
Entering a commodity trade through unpriced volume commitments makes batch-level pricing and settlement the real operating risk. Track whether Luda publishes the quality, weighing, and settlement procedures it has said it intends to establish, since they will show how the trade is actually controlled.
Further reading
For broader context on how cross-border commodity flows are structured, see our coverage of International Trade.
Source note: This article includes information reported by The Manila times.
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