Coal Prices Strengthen, Supported by Sentiment from China, US, and Russia
JAKARTA, investor.id – Coal prices mostly strengthened on Monday (16/2/2026). The gains were supported by industrial restructuring in China, energy policy support from US President Donald Trump, and supply disruptions from Russia and Indonesia that triggered concerns in global markets.
Newcastle coal for February 2026 fell US$0.45% to US$116.25 per tonne, whilst March 2026 rose US$0.2 to US$120.1 per tonne. Meanwhile, April 2026 edged up US$0.05 to US$120.1 per tonne.
Rotterdam coal for February 2026 jumped US$0.5 to US$105.35. March 2026 strengthened US$0.3 to US$107.35, whilst April 2026 edged up US$0.3 to US$106.5.
Citing Trading Economics, the gains were triggered by restructuring moves in China’s coal sector as well as energy policy support from US President Donald Trump.
The price strengthening came after regulators approved a major acquisition plan by China Shenhua Energy Co worth approximately US$19 billion from its parent company, China Energy Investment Corp.
The acquired assets include coal-to-chemical projects, mines, power plants, and logistics networks. This move will strengthen vertical integration and improve supply chain efficiency, whilst boosting Shenhua’s coal production capacity to 512 million tonnes per year.
The restructuring is viewed as part of China’s efforts to streamline its coal industry amid indications that domestic consumption is beginning to peak. The consolidation also strengthens the position of major companies in maintaining supply stability and cost efficiency.
On the other hand, the US government has taken steps to support coal-fired power generation, which has come under increasing pressure. President Donald Trump allocated US$175 million in federal funds to upgrade facilities at six power plants, and instructed the US Department of Defence to purchase electricity from more coal-fired power plants.
The combination of industrial restructuring in China and policy support in the United States has reinforced bullish sentiment in the global coal market. Market participants now view these moves as a signal that coal still plays an important role in the global energy mix, despite mounting pressure from the clean energy transition.
Meanwhile, Energy News Beat reported that coal prices were also boosted by Ukrainian drone attacks on Russia’s main coal export hub on the Black Sea, as well as new supply constraints from Indonesia, the world’s largest thermal coal exporter.