Coal Prices Plunge 9% in a Week as India Triggers Major Global Market Pressure

Global coal prices remained under pressure throughout the week, with the energy commodity recording a sharp decline after negative sentiment emerged from India, the world’s second-largest importer of thermal coal. In trading on Friday, 19 June 2026, the global coal price for the July 2026 contract closed slightly lower by 0.04 per cent at US$131.5 per tonne. However, on a weekly basis, the decline was far deeper, with global coal prices recorded as having plunged 9.31 per cent point-to-point over the week. The weakening extends the pressure experienced by the coal market in recent times, particularly due to reduced import demand from several major consumer countries. One of the biggest factors weighing on coal prices originated from India. A Reuters report stated that India’s thermal coal imports in the period from January to May 2026 fell to their lowest level in four years. The decline in imports occurred alongside rising domestic coal production and the increasingly rapid utilisation of renewable energy to meet national electricity needs. During the first five months of this year, India’s thermal coal imports reached only 65 million tonnes, a figure down 12 per cent compared to the same period the previous year. This condition is a concern for the market because India has long been one of the world’s largest coal consumers. When the country’s imports weaken, pressure on global prices becomes difficult to avoid. The Indian government is also continuing to implement a strategy to reduce dependence on foreign coal supplies. The country is targeting a reduction in the use of thermal coal for power generation of at least 30 per cent throughout this year. Amid efforts to reduce imports, India is actually increasing its domestic coal production. The country’s largest coal producer, Coal India, previously asked all subsidiaries to increase production to anticipate a surge in electricity consumption due to extreme hot temperatures triggered by the El Nino phenomenon. In addition to the domestic production factor, the development of the renewable energy sector also poses a new challenge to coal demand.