The Newcastle coal contract NCFMc2 ended trading on Friday\n(17\/7\/2026) at US$133.35 per tonne, up 3.57% from the previous week\u2019s\nclose of US$128.75 per tonne. Prices moved in a limited range around\nUS$130-US$131 early in the week, but buying picked up in the last two\ndays, pushing coal to its highest closing position of the week.<\/p>\n
The strengthening of coal was mainly supported by developments in\nChina. A heatwave drove the country\u2019s electricity demand to a record of\naround 1.55 billion kilowatts in mid-July. Power plant coal requirements\nincreased while China\u2019s domestic production remains overshadowed by mine\nsafety inspections following a major accident in Shanxi. These\nconditions prompted China to increase purchases from the international\nmarket.<\/p>\n
China\u2019s coal imports in June reached 42.78 million tonnes, surging\n28.6% compared to May and 29.5% year-on-year. As the world\u2019s largest\ncoal consumer, China\u2019s increased buying significantly affects cargo\navailability in the Asian market. Demand from Japan and South Korea also\nsupported high-calorific coal such as Newcastle, as expensive Asian LNG\nprices led these countries to maintain coal as a safeguard for\nelectricity supply.<\/p>\n
The picture from India is somewhat different. A heatwave and weak\nrainfall increased the use of coal-fired power plants, with consumption\nin June reaching its highest level since 2023. However, India is trying\nto meet this need through domestic production. India\u2019s coal imports fell\nnearly 13% year-on-year in April, and thermal coal imports during\nJanuary-May were at their lowest level in four years. This means China\nis pulling more coal from the global market, while India has not yet\naggressively competed for imported supply. This condition is pushing\nprices up, but not enough to create a spike like the one seen in\nmid-June.<\/p>\n
From the supply side, the trade policy of Indonesia, the world\u2019s\nlargest thermal coal exporter, remains a factor to watch. Changes in\nexport governance could add uncertainty, although no additional export\nrestrictions have emerged so far. With the combination of high Chinese\nelectricity demand, domestic production disruptions, and expensive Asian\nLNG, Newcastle coal prices have the opportunity to continue rising\ntowards US$135-US$137 per tonne in the near term. If China continues to\nincrease imports and hot weather persists, prices could test US$140 per\ntonne, although high port stocks in China and weak Indian import demand\nmay make the strengthening gradual.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/coal-prices-surge-dramatically-in-a-week-once-again-due-to-china-1784436645", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }