Jakarta, CNBC Indonesia - Coal prices continued to climb amid rising\noil prices and strong demand. However, ample supply could threaten the\nsustainability of the coal price increase.<\/p>\n
On Monday (20\/07\/2026), coal prices strengthened by 0.30% to\nUS$133.75 per ton. This increase extends its positive trend, gaining\n2.5% over the last three days.<\/p>\n
US crude oil (WTI) closed up 0.9% at US$83.23 per barrel, while the\nglobal benchmark Brent crude strengthened by around 1.3% to US$89.22 per\nbarrel. Coal and oil are substitutable commodities, so their prices\ninfluence each other.<\/p>\n
Coal prices also rose amid increased demand due to heatwaves.\nHowever, demand has moderated compared to last week.<\/p>\n
India confirmed that coal supplies for power plants remain secure\namid a surge in electricity demand due to hot weather and a weak monsoon\nseason. As of 12 July, coal stocks reached 42.8 million tonnes,\nsufficient to sustain plant operations for 14 days at an 85% utilisation\nrate. India\u2019s peak electricity demand last week reached 270.1 GW and is\nexpected to hit 280 GW this year.<\/p>\n
Despite the continued growth of renewable energy, coal remains the\nbackbone of India\u2019s electricity supply, contributing 69.5% of power\ngeneration from April to June. The government is also continuing to\nstrengthen coal supplies and add generation capacity to anticipate high\nelectricity needs.<\/p>\n
The prospect of rising thermal coal prices at Chinese ports is also\nbeginning to lose momentum, even though electricity demand is increasing\nduring the peak summer season. Abundant supply and high coal stocks at\nports are making buyers cautious, making it difficult for price\nincreases to continue.<\/p>\n
Market participants noted that selling interest is starting to\nincrease, while buying activity remains limited. This condition offsets\nthe positive sentiment from safety inspections at several coal mines in\nChina and expectations of higher electricity consumption due to summer\nheatwaves.<\/p>\n
High coal inventories at northern Chinese ports are the main factor\nlimiting price increases. Although temperatures are rising and\nelectricity demand is expected to increase, large stockpiles mean power\nutilities are in no rush to make large-scale purchases.<\/p>\n
Under these conditions, the market expects thermal coal prices to\nmove in a limited range in the near term, unless there is a larger\nsupply disruption or a surge in electricity demand that exceeds\nexpectations.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/coal-prices-surge-for-three-days-but-threats-loom-1784598735", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }