Coal Prices Lose Direction Amid China's Weak Restocking Demand

Coal prices edged up slightly, still overshadowed by oil movements and developments in China.

According to Refinitiv, coal prices on Wednesday (12/8/2026) closed at US$134.1 per tonne, a marginal increase of 0.07%.

Oil and coal are substitute commodities, so their prices influence each other. Coal prices have been hovering around US$134 and have nearly “lost direction”, remaining unchanged for three consecutive days.

Oil prices rose slightly on Wednesday (12/8/2026) amid continued attacks on vessels in the Middle East and stalled talks to end the Iran war.

Brent crude rose 7 cents to US$88.98 per barrel, while US West Texas Intermediate (WTI) also rose 7 cents to US$83.27 per barrel.

Coal prices remain overshadowed by mixed demand from a number of countries.

Exports of all types of coal from the Port of Newcastle in New South Wales, southeastern Australia, reached 12.63 million tonnes in July 2026. This figure fell 16.5% month-on-month and 7% year-on-year, according to the latest data from the port authority.

The Port of Newcastle is one of the key export routes for Australian coal to global markets, with the majority being thermal coal, according to Mysteel Global.

The decline was mainly triggered by reduced shipments from the port to major destination countries in Northeast Asia.

Based on Mysteel maritime data, coal shipments from Newcastle to China reached 2.38 million tonnes in July, down 41% month-on-month and 25% year-on-year.

Chinese importers likely reduced purchases from Newcastle in July because restocking demand from domestic power companies remained weak.

Although Chinese power companies increased coal consumption to meet higher electricity demand during the summer, many made only limited purchases on the spot market.

Stable domestic supply through long-term contracts kept their coal inventories at safe levels.

Based on a Mysteel survey of 493 coal-fired power plants in China, their total coal inventories reached 97.89 million tonnes on 30 July, up from 97.19 million tonnes at the end of June. The stockpile was sufficient to meet needs for around 22 days.

Nevertheless, the thermal coal market at northern Chinese ports also remained firm. Coal prices with a calorific value of 4,500 Kcal/kg reached a new high.

The increase was supported by declining stockpiles and tight availability of low-calorific coal. However, the upward momentum is beginning to face resistance, so the room for further increases is considered increasingly limited.

Besides China, Australian coal exports through Newcastle to Japan fell 13% month-on-month and 22% year-on-year to 5.13 million tonnes in July.

Meanwhile, shipments to South Korea reached only 265,320 tonnes, plunging 80% month-on-month and 37% year-on-year.

Despite the decline in July, cumulatively from January to July 2026, total coal exports for all uses through the Port of Newcastle reached 87.36 million tonnes, up 7.6% compared with the same period last year.