NYSE-listed industrial steel components trader Luda Technology Group has announced its entry into the Mongolia-China coal trading business.

Starting with thermal coal, Luda is expanding its stainless steel manufacturing and trading operations to trade more commodities such as fluorspar, tungsten, iron-ore, rare earths and copper.

Luda entered into agreements with two customers in the Chinese market for the supply of 440 000 t of Mongolian thermal coal over one year, comprising of 220 000 t per customer.

For each customer, the commitments cover 20 000 t to be supplied through November 30, and an additional 200 000 t through October 14, 2027.

These agreements mark the company’s expansion into commodity trading and provide the foundation for a broader long-term strategy focused on energy, metals, and marketable mineral products.

To support and meet these customer commitments, Luda has also entered into a supply agreement with a Mongolian company to source thermal coal originating from Tsogttsetsii, South Gobi province, in Mongolia.

Luda will act as the trading intermediary between the Mongolian supplier and the two customers in China.

Together, the purchase and sale agreements establish quantity commitments from both supplier and buyer but do not fix a unit price or total contract value.

Pricing is subject to market conditions and confirmation before payment and shipment of each ordered batch.

Through the initial customer agreements, Luda aims to establish procedures for quality testing, weight verification, and settlements to provide an operational framework for these trading activities.

BROADER STRATEGY

Luda views its entry into the coal trading business as the first step in developing a broader, cross-border commodity trading platform.

The company intends to leverage capabilities developed through the execution of the agreements, including sourcing, quality control, logistics coordination, cross-border transaction management, and customer relationships to support the future growth and expansion of its commodity trading operations.

Over time, Luda plans to evaluate opportunities across a wider range of energy, metals, and mineral commodities, including fluorspar, tungsten, iron-ore and copper products.

Any expansion beyond coal will depend on market demand, supplier relationships, financing requirements, regulatory considerations, and transaction economics. The company has not yet entered into definitive agreements for these additional products unless otherwise announced.

Luda CEO and chairperson Ma Biu says the company's entry into the Mongolia-China coal trading business represents an important first step in establishing the group's commodity trading business and is intended to further diversify revenue streams beyond core operations.

"Our immediate focus is successful execution of the contracted coal volumes, disciplined risk management, and building a reliable and foundational operating platform that can scale beyond coal trading.

"As we begin developing the necessary commercial relationships, we intend to evaluate opportunities to expand into additional energy, metals, and mineral commodities that can complement our trading operations and capabilities. Our objective is to build a diversified commodity trading business through carefully selected transactions supported by market demand and sound commercial fundamentals," Biu concludes.