Coal Prices Continue to Plunge Amid Abundant Supply

Coal prices continue to sink. According to Refinitiv, coal prices closed at US$124.95 per tonne during trading on Wednesday (15 April 2026). The price tumbled 2.6%. This weakening extends the suffering of the black rock, with a 5.7% plunge over the last two days. The collapse in coal prices follows the drop in oil prices, weakening demand, and piling up supply. Oil prices fell 0.5% yesterday, directly impacting coal as a substitute commodity. Thermal coal prices at Chinese ports are tending sideways due to still-weak demand, thus capping price increases. Thermal coal prices at China’s major ports showed little change as the market is balanced between tight supply and weak demand. Seasonal electricity consumption remains low, so utilities and industrial buyers are not aggressively purchasing additional coal. Many buyers are only procuring what they need. Imported coal prices and sea freight costs remain high, making China’s domestic coal relatively more attractive. This factor also supports local prices. Market players are monitoring whether rising temperatures in southern China will increase air conditioning use and boost electricity demand, potentially lifting coal prices in the coming weeks. From India, reports indicate coal prices fell on a weekly basis. This decline was triggered by low buying interest and the continued preference for domestic coal due to better availability and more competitive prices, keeping market sentiment subdued. Preliminary data from the Ministry of Coal for March 2026 shows total production reached 113.67 million tonnes. This figure equates to 113.07% of the monthly target of 100.53 million tonnes. However, it indicates a slight 4.09% decrease compared to March 2025 production. Major producer Coal India Limited produced 84.46 million tonnes, equivalent to 90.34% of its monthly target. Singareni Collieries Company Limited produced 5.17 million tonnes, while captive mines and others contributed 24.05 million tonnes, up slightly by 0.96% year-on-year. For the entire 2025-26 fiscal year, total coal production reached 1.04 billion tonnes, down slightly by 0.64% from the 2024-25 fiscal year of 1.047 billion tonnes.