Coal Prices Plunge, Sign That the War is Starting to Ease
Jakarta, CNBC Indonesia - Coal prices have plummeted compared to the previous week’s close, in line with the decline in global oil prices.
According to Refinitiv, coal prices closed at US$134.45 per tonne on Friday (8/5/2026), down 0.55% from the previous trading day.
This weakening continues the downward trend from Wednesday (6/5/2026), although there was a brief rebound on Thursday (7/5/2026) for the coal commodity.
The plunge in coal prices is due to easing geopolitical tensions, with glimmers of hope visible from the gradual levelling off of global commodity and energy prices.
West Texas Intermediate (WTI) oil has fallen to $95.52 per barrel. Meanwhile, Brent oil has dropped to $101.29 per barrel, where Brent had touched above $114 at the start of the week and WTI at $106.
Coal and oil are commodities that influence each other, so their correlation is highly interdependent.
China’s Coal Import Volume Declines, India’s Production Also Pressured
China’s Customs Administration recorded a 14% year-on-year decline in coal imports in April 2026, to 33.1 million metric tonnes, compared to 37.83 million metric tonnes in April 2025.
For the period from January to April 2026, China’s total coal imports reached 149.4 million metric tonnes, a 2.1% year-on-year contraction. In comparison, imports in March 2026 had recorded a slight 1% year-on-year increase to 39.06 million tonnes.
In China’s domestic market, thermal coal prices at ports are reported to be relatively stable after the Labour Day holiday period. The current market conditions are influenced by the dynamics between supply and demand.
Trading activity has been relatively calm post-holiday, as the increasing coal supply at ports has not yet been matched by strong or fully recovered buyer demand.
Meanwhile, energy supply conditions in India are under scrutiny. Coal India Ltd reported a 9.7% decline in coal production in April 2026 to 56.1 million tonnes, down from 62.1 million tonnes in the same period last year.
This decline adds to concerns about energy supply resilience at a time when India’s electricity demand is surging sharply due to extreme heatwaves.
In line with the production drop, coal dispatch or sales to customers also fell 2% year-on-year to 63.2 million tonnes, compared to 64.5 million tonnes in April the previous year.