Coal Prices Fall as Demand from China Weakens

Coal prices have fallen in line with weakening demand.

According to Refinitiv, coal prices in Wednesday’s (23/09/2026) trading closed at US$ 142.77 per tonne, representing a 0.9% decrease.

Coal prices in China are losing momentum to rise, although demand from power plants is helping to prevent a deeper decline. The price increase for thermal coal at the pit mouth is losing momentum as downstream buyers become increasingly cautious.

Following a previous period of price increases, power plants have begun to limit purchases, relying more heavily on coal from long-term contracts. Spot trading activity has also slowed as buyers are unwilling to follow further price hikes.

Domestic supply in China has begun to increase as mining activity returns to normal, thereby increasing pressure on prices. This situation has created a market that tends to move sideways, though the decline is being buffered by the needs of power generation.

A number of mines in Shaanxi and Inner Mongolia had actually begun to raise prices after previous declines; however, demand has not yet become truly robust. Coal consumption across China’s six major coastal power plant groups fell to 820,000 tonnes per day on 15 September, a weekly decrease of 3.91% and a monthly decrease of 11.41%. Conversely, power plant inventories have slightly increased and remain above previous year levels.

This indicates that power plants do not yet have an urgent need to chase spot prices, particularly as they continue to rely on supplies through long-term contracts.