Coal Prices Plunge 6% in a Day! Not Just Due to Easing War

Coal prices plunged in line with the easing of energy prices after Iran and the United States agreed to a ceasefire. According to Refinitiv, coal prices closed at US$132.45 per tonne on Wednesday (8/4/2026), down 6.06%. This decline contrasted with a 1% gain the previous day. Coal prices fell sharply alongside the softening energy market. Crude oil prices dropped 14%, natural gas prices plunged 5%, while European gas prices tumbled 15% in yesterday’s trading. Coal, as a substitute energy commodity for oil and gas, has prices that influence each other. The price fall was also due to increased supply and weakening demand. Thermal coal inventories at Indian ports rose 3.3% week-on-week to 13.53 million tonnes in week 14, compared to 13.10 million tonnes in week 13. This indicates a continuing increase in stocks, supported by the arrival of new cargoes at several east and west coast ports. On the east coast, Paradip rose 8.9% to 1.52 million tonnes, maintaining its position as one of the ports with the highest stocks. Meanwhile, Krishnapatnam surged 53.4% to 0.26 million tonnes, and Gangavaram increased 36.4% to 0.21 million tonnes, indicating inflows of new cargoes. However, Dhamra fell sharply 13.8% to 0.88 million tonnes, Vizag dropped 9.8% to 0.67 million tonnes, and Tuticorin weakened 11.7% to 0.59 million tonnes, reflecting ongoing stock drawdowns. The weekly inventory rise was mainly driven by new cargo arrivals and restocking at major ports such as Paradip, Mundra, Magdalla, and Kandla. Despite declines at some ports like Dhamra, Vizag, and Navlakhi, the overall inventory increase shows that cargo arrivals remain strong, while consumption and stock drawdowns continue. This condition reflects a relatively balanced market. Meanwhile, China reported that coking coal imports from Mongolia continued a downward trend, mainly due to weakening demand from the steel sector. Steel demand weakened as steel mills held back on raw material purchases.