Coal Prices Collapse for Two Consecutive Days
Coal prices continue to ease amidst falling oil prices and rising supply. According to Refinitiv, coal prices on Wednesday (16/09/2026) closed at US$ 146.1 per tonne, representing a 0.2% decrease.
This decline extends a negative trend, marking the second consecutive day of weakening prices. One of the primary drivers for this weakness is the drop in oil prices. As oil and coal are substitute commodities, their prices typically influence one another. On Wednesday, oil prices fell by 3% after a period of recent gains.
Coal prices have also levelled off due to reduced supply concerns. The thermal coal market in China’s northern ports is showing signs of stability, as several buyers have begun restocking ahead of holidays, causing mine-mouth coal prices to start strengthening again. However, on a weekly basis, prices are still declining in several regions, indicating that the recovery is not yet fully robust.
Stable demand from the chemical industry and non-power sectors has helped increase sales for certain types of high-quality coal. This situation has given some producers more confidence to raise prices. Nevertheless, this recovery does not yet signify that the market has entered a strong upward trend, as purchasing activity remains relatively limited and demand from the power generation sector has not provided a significant boost.
In India, the government has stated that adequate coal supplies have been distributed to Independent Power Plants (IPP) in Punjab from captive mines owned by the Punjab State Power Corporation Limited (PSPCL). This statement refutes reports regarding an intensifying electricity crisis in the state. The Indian Ministry of Coal stated that Coal India Limited (CIL) remains committed to ensuring uninterrupted fuel supplies for power generation across India, including Punjab.
The Ministry cited rake supply data showing that coal deliveries to two major independent power plants remain higher than consumption levels. However, it was noted that Punjab needs to increase the offtake of coal from its own captive mines to optimise power generation at its plants.