Coal Prices Surge Again as India Quietly Stockpiles Supply
Coal prices have surged again following a sharp rebound in crude oil prices.
According to Refinitiv data, coal prices closed at US$134.9 per tonne on Wednesday, 11 March 2026, rising 2.9% after plummeting 8.83% the previous day. The rally was driven by surging oil prices, with Brent crude climbing 4.8% and WTI rising 4.6% on the same day.
The oil price surge has been sparked by escalating Middle Eastern tensions. Iran declared that the world should prepare for crude prices reaching US$200 per barrel following its attack on commercial vessels on Wednesday. In response, the International Energy Agency recommended the release of substantial strategic oil reserves to counter what it termed one of the worst oil price shocks since the 1970s.
Coal and oil are substitutable commodities, meaning their prices are mutually influential. Online auction activity for coking coal in China has recently strengthened, assisting mines in reducing accumulated stock. However, spot market trading remains highly selective, as demand from end-users has not yet genuinely recovered.
In recent days, numerous mines across China’s major producing regions—including Shanxi and Shaanxi—have launched online auctions to sell coking coal. Several transactions were completed at prices marginally higher than previous sessions, helping mines clear inventory that had built up due to sluggish sales. Although transaction volumes have increased through auction platforms, this activity primarily reflects producers’ efforts to reduce stockpiles rather than strong demand growth.
In contrast, thermal coal prices at China’s mine-mouth level have weakened in recent days, as demand from power plants and downstream sectors remains relatively subdued. Limited price increases have occurred at certain mines due to local factors such as coal quality or tighter stock positions.
India has meanwhile announced that it is fully prepared to meet unprecedented coal demand surges amid rising Middle Eastern tensions threatening global energy supplies. The country currently holds approximately 210 million tonnes of coal stock, sufficient for approximately 88 days of consumption—a 14% increase.
Coal India Ltd (CIL) holds 121.39 million tonnes at pithead as of 9 March 2026, up from 106.78 million tonnes on 1 April 2025. Additionally, roughly 6.07 million tonnes are stored at Singareni Collieries Company Limited (SCCL) mines, approximately 15.12 million tonnes at captive and commercial mines, and around 14 million tonnes in transit, totalling 156.58 million tonnes—a historic high.
This stockpile exists separately from coal already available at power plants, which reached approximately 54.05 million tonnes as of 9 March 2026, sufficient for approximately 24 days at current consumption rates.
“Total coal stock availability in the country is approximately 210 million tonnes, sufficient for around 88 days,” the coal ministry stated, according to The India Times.
Coal production in India continues at current pace, adding to mine-side stock to maintain adequate supply for consumers as needed, supported by rail transport infrastructure. The coal ministry remains focused on creating a stable, performance-based environment through sustainable policy facilitation, rigorous performance monitoring, and stakeholder coordination.
The objective is to ensure reliable coal availability, support uninterrupted operations across critical sectors, and meet the nation’s rising energy requirements.