Jakarta, CNBC Indonesia - Coal prices weakened despite being\nsupported by numerous positive sentiments. According to Refinitiv, coal\nprices closed at US$134.5 per ton on Thursday (23\/7\/2026), down 0.77%.\nThis decline snapped a positive trend in which prices had strengthened\nby 3.9% over the previous five days. The price fell even as oil prices\nsoared past US$100 per barrel and despite supportive news, including a\nsupply crisis in India.<\/p>\n
India is facing coal supply pressures amid surging electricity\ndemand. As of mid-July 2026, coal stocks at steam power plants (PLTU)\nwere only sufficient for about 13 days of operation, far below the ideal\nnorm of around 26 days. Several factors have caused the depletion of\ncoal reserves, including a spike in electricity demand due to hotter\nweather from the El Ni\u00f1o phenomenon, which has increased the use of air\nconditioning. Additionally, electricity production from hydropower and\nwind plants has been disrupted by lower-than-normal rainfall.\nConsequently, coal-fired power plants must operate more intensively to\nmeet national electricity needs. Coal inventories at PLTUs reached\napproximately 41 million tonnes, enough for about 13 days of operation,\na level below normal. To maintain current generation rates, Indian power\nplants require around 3.1 million tonnes of coal per day. On the other\nhand, mines owned by Coal India Ltd.\u00a0still have around 152 million\ntonnes of coal inventory that can be distributed to power plants.\nIndia\u2019s electricity demand surged to around 270 gigawatts (GW) in\nmid-July, approaching the all-time record of 270.2 GW recorded in May.\nThe government estimates that peak electricity load could reach 280 GW\nthis year if the rainy season remains weak. The Indian government has\nasserted that coal supply remains under control despite declining stocks\nat power plants. The Ministry of Coal, Ministry of Energy, and Ministry\nof Railways are enhancing coordination to ensure smooth coal\ndistribution to PLTUs and prevent electricity supply disruptions.\nAlthough India continues to develop renewable energy, coal remains the\nprimary source of national electricity. During the April-June 2026\nperiod, coal and lignite-fired power plants contributed about 69.5% of\nelectricity supply, with their contribution reaching around 75% during\nevening peak loads. To maintain system reliability, India also added\n9.47 GW of PLTU capacity in 2025-2026 and a further 2.26 GW between\nApril and July 2026.<\/p>\n
In the United States, President Donald Trump has allocated US$700\nmillion to revive the coal industry amid soaring energy prices following\nthe Iran war. The funding uses the Defense Production Act, a Cold\nWar-era law granting the president authority to support strategic\nindustries. \u201cToday we are taking a historic step to lower energy prices\nand the cost of living for the American people through the power of\ncoal,\u201d Trump said, as quoted by the BBC. Of the total investment, US$500\nmillion is allocated to maintain the operations of 14 coal-fired power\nplants, 42 coal mines, and to build a new export terminal in California.\nThe remaining US$200 million will be used to construct two new\ncoal-fired power plants in Alaska and West Virginia, marking the first\nsuch projects in the US since 2013. Trump claimed the investment would\ncreate around 14,000 jobs and save consumers US$50 billion in\nelectricity generation costs. The move follows the Iran war and the\nclosure of the Strait of Hormuz, which caused energy prices to spike.\nPetrol prices in the US have reached US$4.24 per gallon, up from US$2.98\nat the start of the conflict, while consumer energy prices surged 17.9%\nyear-on-year as of April.<\/p>\n
Sentiment in China\u2019s northern port thermal coal market weakened again\nas demand remained sluggish and port inventories stayed high. However,\nmarket participants remain optimistic that prices will not fall sharply\nbecause mine-side supply is relatively tight and shipping costs remain\nhigh. Demand in China is weak as buyers, especially power plants, are\nstill reluctant to make large spot purchases. Many utilities are\nchoosing to wait because their existing stockpiles are still sufficient.\nHigh coal inventories at northern Chinese ports continue to put pressure\non prices, weakening market sentiment compared to previous days. Despite\nthe weaker sentiment, traders are not aggressively cutting prices.\nAnalysts assess that supply from mining areas remains limited, providing\nsupport for prices. Market participants expect electricity demand to\nincrease due to hot weather and summer air conditioning use. The rise in\nelectricity consumption is expected to drive coal purchases in the\ncoming weeks, potentially strengthening prices again.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/coal-prices-dip-after-five-day-rally-amid-indias-supply-crisis-1784854255", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }