Jakarta - Coal prices have weakened again, continuing a correction\nfor the second consecutive day. According to Refinitiv data, the June\ncoal contract closed at US$133.9 per tonne on Wednesday\u2019s trading\n(13\/5\/2026).<\/p>\n
The price fell 1.4% compared to the previous close at US$135.8 per\ntonne. This decline was deeper than Tuesday\u2019s correction of 0.44%.<\/p>\n
With this drop, coal prices have now weakened for two days in a row.\nThe price is also moving further away from the US$136.4 per tonne\nrecorded on Monday\u2019s trading (11\/5\/2026).<\/p>\n
Pressure on coal prices is still coming from China. Sentiment in the\ndomestic thermal coal market at mine-mouth areas is cooling, in line\nwith increasing caution among market players.<\/p>\n
The previous upward momentum is starting to stall in several\nproduction centres.<\/p>\n
This situation indicates that buyers are becoming less aggressive in\nchasing prices. Market players tend to wait for clearer demand direction\nbefore resuming large-scale purchases.<\/p>\n
On the other hand, sellers have not yet made significant price cuts.\nOffer prices are still moving within a limited range as some sellers try\nto maintain margins amid supply costs that are not yet low.<\/p>\n
However, room for price increases is becoming limited. Transaction\nactivity in the physical market is not very brisk, while demand from end\nconsumers is not yet strong enough to push prices higher.<\/p>\n
Buyers\u2019 cautious stance also arises because coal stocks at several\nend users remain relatively adequate. This condition means the need for\nadditional purchases is not yet urgent.<\/p>\n
In addition, the market is still awaiting a rise in electricity\nconsumption. Coal demand usually increases when electricity needs rise,\nespecially when temperatures are hotter and air conditioning usage\nincreases.<\/p>\n
India Brings Good News<\/p>\n
Amid pressure from China, the coal market has received positive news\nfrom India. The Indian government has approved a scheme worth 375\nbillion rupees, or around US$3.92 billion, to promote coal gasification\nprojects.<\/p>\n
Indian Information Minister Ashwini Vaishnaw said the policy aims to\nreduce India\u2019s dependence on imported fuels while directing domestic\ncoal towards cleaner industrial uses.<\/p>\n
Coal gasification is the process of converting coal into synthetic\ngas. This gas can be used for power generation, fertilisers,\npetrochemicals, and various other industrial needs.<\/p>\n
The policy is expected to curb India\u2019s imports of liquefied natural\ngas (LNG), urea, ammonia, and methanol. This is important as India\u2019s gas\nimports have been affected by the crisis in the Middle East.<\/p>\n
India has one of the world\u2019s largest coal reserves, at around 401\nbillion tonnes, and 47 billion tonnes of lignite reserves. The Indian\ngovernment targets gasifying about 75 million metric tonnes of coal per\nyear.<\/p>\n
The scheme is also estimated to attract investments of around 3\ntrillion rupees. Under the plan, the government will provide financial\nassistance of about 20% of the factory and machinery costs.<\/p>\n
This news is a breath of fresh air for the coal market as it can\nexpand India\u2019s demand base.<\/p>\n
With gasification, coal is not only absorbed by power plants but also\nenters industrial needs such as fertilisers, petrochemicals, and\nsynthetic fuels. This means India\u2019s coal consumption has the potential\nto remain substantial in the medium term.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/coal-prices-slide-news-from-india-could-be-a-saviour-1778730831", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }