Coal Prices Heat Up Again as Demand Remains Ferocious

Jakarta, CNBC Indonesia - Coal prices climbed amid a resurgence in oil prices and rising demand. According to Refinitiv, coal prices in trading on Wednesday (10/6/2026) closed at US$148.00 per ton, up 0.72%. This increase is welcome news after the price previously slumped by 2.26%. Coal prices strengthened in line with oil, as the two are substitute commodities. WTI oil prices jumped nearly 2% to US$89.72 per barrel, while Brent strengthened by 1.3% to US$92.74 per barrel. The rise in coal prices was also supported by demand. The intensifying conflict in the Middle East is beginning to reshape Asia’s energy map. Disruption to LNG (liquefied natural gas) supplies from the Gulf region, especially Qatar, is causing several Asian countries to rely once again on coal to maintain electricity supply. Around 20% of the world’s LNG trade typically passes through the Strait of Hormuz. Tensions in the region have triggered a spike in LNG prices and caused power utilities to switch to coal, which is considered cheaper and more readily available. The impact is starting to show in Asia’s largest energy-consuming countries. Japan and South Korea are increasing coal-based electricity generation, while natural gas use has declined. Research from Rystad Energy estimates that Asian thermal coal consumption could surge by up to 100 million tonnes due to the LNG supply crisis, with around half of the increase expected to occur in 2026. Not only in East Asia, Southeast Asian countries like Vietnam, Thailand, and the Philippines are also beginning to increase the use of coal-fired power plants to maintain electricity supply security. This phenomenon shows that amidst the vigorous push for energy transition, coal remains a ‘saviour’ when alternative energy supplies are disrupted. Many countries remain committed to green energy, but short-term energy security is now the top priority. If this trend continues, Asian coal demand has the potential to rise sharply, acting as a positive catalyst for global coal prices, including benefiting coal exporters such as Indonesia.