Coal prices surged again amid rising oil prices and supply concerns.\nAccording to Refinitiv, coal prices in trading on Monday (10\/8\/2026)\njumped 3.48% to US$134 per tonne. This price increase reversed the 0.19%\nweakening on Friday last week. Coal prices strengthened, supported by\noil and supply disruptions.<\/p>\n
Oil prices soared around 5% on Monday due to doubts that the United\nStates (US) and Iran would reach an agreement to reopen ship traffic in\nthe Strait of Hormuz. WTI prices closed at US$82.13 per barrel, while\nBrent was at US$87.72 per barrel. Oil and coal are substitute\ncommodities, so their prices influence each other.<\/p>\n
Chinese coking coal prices received a fresh boost amid tight mine\nsupply and declining stocks. Improved auction activity and limited\nshipments from mines also lifted market sentiment. A number of\nindicators also showed improving market sentiment, especially from\nonline auctions, low stocks, and relatively tight coal shipments from\nmines.<\/p>\n
However, the price increase is not yet fully solid. Weak downstream\nindustry margins remain a barrier to demand and could potentially limit\nthe room for price strengthening. On the supply side, a number of\nChinese mines are still facing production disruptions. Sxcoal previously\nnoted that Chinese coking coal prices began to strengthen due to tight\nsupply caused by the temporary suspension of several mines, while some\ndownstream consumers began restocking.<\/p>\n
From India, it was reported that heavy rains in coal-producing\nregions, including Telangana and Maharashtra, disrupted mining\nactivities and railway transport. This condition caused coal supply to\nKarnataka to drop drastically. The number of coal transport trains\nentering Karnataka plummeted from around 11 trains per day under normal\nconditions to only 5-6 trains per day. As a result, coal deliveries to\npower plants slowed significantly.<\/p>\n
On the other hand, Karnataka\u2019s electricity demand remains high,\napproaching 300 million units per day. Hydropower production has also\nnot fully recovered, so the state\u2019s dependence on coal-fired plants\nremains high. If heavy rains and railway disruptions continue, coal\nstocks at power plants could decline, increasing the need for\nreplenishment. This condition could potentially boost demand and prices\nfor thermal coal in the regional spot market. However, for now, coal\nstocks at Karnataka\u2019s power plants are still sufficient, so the risk of\nfuel shortages in the near term remains relatively limited.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/coal-prices-surge-overnight-china-and-india-face-risks-1786409492", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }