Coal Prices Surge for Five Consecutive Days

Coal prices remain on an upward trend. According to Refinitiv, coal prices closed at US$135.55 per ton on Wednesday (22/7/2026), strengthening by 0.78%. This increase extends its positive trend, with a 3.9% gain over the last five days. The rise in coal prices is partly supported by persistently high oil prices. Brent crude oil surged to a six-week high of US$95 per barrel on Wednesday. Coal and oil are substitutable commodities, so their prices influence one another. The increase is also supported by demand. Japan’s Ministry of Finance reported that the country’s thermal coal imports in June 2026 rose 18.5% year-on-year to 7.148 million tonnes. Meanwhile, thermal coal prices at northern Chinese ports are beginning to lose upward momentum, despite rising production and shipping costs. The main reason is very high coal inventories at ports and power plants, meaning buyers are in no rush to make purchases. Prices have started to stagnate after a recovery, as the increase in production costs could not overcome the pressure from high port stockpiles. Demand from utilities and power plants is also reportedly sluggish. Despite entering the peak summer season, which typically increases electricity consumption, power companies are choosing to buy only as needed because their stockpiles are already high. Ample inventories at ports and power plants give buyers a stronger bargaining position, making them unwilling to accept price increases. Supply disruptions, such as safety inspections at mines and reduced railway deliveries, are providing some support to prices, but the impact is limited because the available supply at ports remains very large. Market participants assess that a sustained price increase is unlikely unless there is a significant drawdown of stockpiles or a surge in summer electricity demand.