Coal prices soared, supported by rising oil prices and supply issues.\nOn Monday (31\/8\/2026), coal prices closed at US$ 144 per tonne,\nrepresenting a 3.04% increase. This surge marks the first time prices\nhave breached the US$ 140 level since 12 June 2026, and stands as the\nhighest position since that date. This increase extends a positive\ntrend, with prices strengthening by 4.04% over the last four days.\nThroughout August 2026, coal prices jumped by 7.5%.<\/p>\n
The surge in coal prices is supported by the heating of oil prices.\nBrent crude returned to US$ 91 per barrel on Tuesday (1\/9\/2026). Supply\nissues have also caused coal prices to ignite. China has faced coking\ncoal supply issues for months, driving the price of this essential steel\nindustry raw material up by 46% throughout August 2026, marking the\nlargest monthly increase in history.<\/p>\n
Coking coal futures on the Dalian Commodity Exchange in China rose by\napproximately 6% on Monday (31\/8\/2026), amid supply disruptions\nfollowing a mining accident in May and increased safety inspections at\nseveral Chinese mines. If this 46% monthly increase holds, it will be a\nrecord since Dalian coking coal futures began trading in 2013. The\nprevious record was set in July 2025, when prices surged by 38%.<\/p>\n
Coking Coal Prices Pressure Steel Industry<\/p>\n
The price surge is not felt only in China. Steel producers in India,\nthe world\u2019s second-largest steel producer after China, are beginning to\nface margin pressure due to rising raw material costs. India relies on\nimports to meet up to 95% of its coking coal requirements. This type of\ncoal has a higher carbon content and lower ash and moisture levels\ncompared to thermal coal used for power plants.<\/p>\n
In Australia, FOB coking coal premiums surged by 25% in the first\nseven months of 2026 compared to the same period last year due to a\nseries of supply disruptions. The price increase was triggered by slow\ngrowth in new mine production, rising costs due to the Iran war, supply\ndisruptions in Australia, and a fatal mine explosion in China\u2019s Shanxi\nProvince, which killed more than 80 people.<\/p>\n
Mining giant BHP assesses that coal prices for the steel industry\nhave strengthened compared to 2025 due to high import demand from India\nand supply disruptions tightening the global market. Prices at the mine\nmouth continue to rise, subsequently increasing procurement costs for\nport traders. Spot supplies are becoming increasingly tight, making it\ndifficult for traders to secure coal for resale. Rising replacement\ncosts are also pushing port prices higher.<\/p>\n
Thermal coal prices at northern Chinese ports are also accelerating,\ndriven by tight supply, rising mine-mouth prices, and increased\nprocurement costs. This domestic price increase is beginning to narrow\nthe price advantage of imported coal. Previously, imported coal was\ncheaper and thus an attractive option for Chinese power plants; however,\nthe price gap is now narrowing.<\/p>\n
Mongolian Coal Supply to China Plummets<\/p>\n
Supplies of Mongolian coking coal to China continue to decline after\nthe Ganqimaodu Port tightened environmental inspections and banned coal\nstorage in open areas. The number of trucks passing through dropped to\n505 units on 27 August, the lowest since October 2025. Consequently,\ncoal supplies at three major Chinese border ports plummeted by 73.7% to\n68,175 tonnes. Mongolian coal stocks at Ganqimaodu also fell by 32% over\ntwo weeks to 2.31 million tonnes on 28 August. Mongolia is China\u2019s\nlargest coking coal supplier, accounting for approximately half of the\nsteel industry\u2019s raw material imports. These supply disruptions have\nfurther driven prices upward.<\/p>\n
Coal India Targets 815 Million Tonne Production, Prepares 2\nSubsidiary IPOs<\/p>\n
India\u2019s largest coal company, Coal India, has set a production target\nof 815 million tonnes for the 2026\/2027 fiscal year (FY27) and aims to\nreach 1 billion tonnes per year by FY30. The Indian state-owned mining\ncompany is also accelerating plans for initial public offerings (IPOs)\nfor two subsidiaries, Mahanadi Coalfields and Southeastern Coalfields,\nwithin the current fiscal year. This move is part of Coal India\u2019s\nstrategy to optimise production while unlocking company value through\nthe capital markets. However, approximately 84 Coal India mines are\ncurrently reported to be operating at a loss, according to information\ncited from reports that have not been independently verified.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/coal-prices-hit-us-144-china-sees-largest-historical-increase-1788227642", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }