Coal Prices Surge Again, Boosted by War and Chinese Traders
Coal prices have surged again, following the movement of global oil and gas prices.
According to Refinitiv, coal prices closed at US$132.05 per tonne on Monday (13/4/2026) trading, marking a 1.7% increase.
This rise breaks the negative trend where coal prices had plummeted 7.9% over the previous three trading days.
The increase in coal prices is supported by the strengthening of energy prices yesterday. West Texas Intermediate (WTI) crude oil rose 2.6% to US$99.08 per barrel, while international Brent jumped 4.37% to US$99.36 per barrel.
European gas prices also soared 2.7%. Energy prices have rebounded due to the ongoing escalation of the war in the Middle East following the failure of a ceasefire.
Coal, oil, and gas are complementary energy commodities, so their prices can influence each other.
The rise in coal prices is also aided by positive news from China.
Thermal coal prices at China’s major ports have risen, triggered by traders buying for short-term speculation in hopes of continued price increases.
However, utility demand remains weak as power plants have not been aggressively purchasing coal. Stockpiles at power plants are still sufficient, and seasonal electricity consumption is not yet high.
For this reason, the current price increase is considered fragile because it is not driven by end-user demand; the price rally is deemed not solid. If traders stop buying, prices could quickly correct.
Traders are hoping that China’s summer season will boost air conditioning use and electricity consumption. If a heatwave arrives, utilities could start buying in large quantities.
Reports from India indicate that coal imports fell 8.5% in February due to very high domestic supplies and still-strong global coal prices, reducing the need to purchase from abroad.
India’s coal imports in February dropped to 16.55 million tonnes, compared to 18.10 million tonnes in the same period the previous year.
Domestic coal stocks in India have reached high levels, so power plants and industries do not need much imported supply.
The currently high international coal prices make imports less economically attractive compared to buying local coal.
The weak import trend is likely to continue as domestic producers work to reduce piled-up stocks.