Coal Prices Weaken, Is India the Culprit?

Jakarta, CNBC Indonesia - Coal prices weakened after oil prices fell. Referring to Refinitiv, coal prices in trading on Tuesday (4/8/2026) closed at US$ 132.35 per ton, a drop of 1.41%. This decline contrasted with a 0.19% gain on Monday. The weakening of coal prices was primarily triggered by the slump in oil prices. West Texas Intermediate (WTI) crude oil futures closed down 5% at US$75.77 per barrel. Meanwhile, Brent crude, the international benchmark, fell 5.26% to US$79.36 per barrel. Prices also weakened due to still sluggish demand. India’s coal import demand remains weak amid abundant domestic supply and high power plant stockpiles. The rainy season, which suppresses industrial energy consumption, has also prevented India from becoming a driver of global coal prices. On the other hand, coal production from captive and commercial mines in India surged 9.61% year-on-year to 14.78 million tonnes in July 2026. This production increase further reduces India’s dependence on imports while strengthening national energy security. Overall, Asian coal prices are recovering from the sharp correction in early July. However, the current price strengthening is more supported by supply discipline, while demand remains weak, especially from India. China remains the main pillar of price stability in the region. Meanwhile, thermal coal prices at northern Chinese ports saw limited gains. The increase was held back by abundant coal inventories and cautious buyers. Thermal coal prices at major northern Chinese ports rose, supported by relatively tight domestic supply following mine safety inspections after a major accident in Shanxi. However, the price increase was limited as coal stocks at several southern Chinese ports continued to rise. Sxcoal data showed coal stocks at Fangcheng Port reached 3.83 million tonnes as of 24 July, surging 29.3% month-on-month and up 23.1% year-on-year. Stocks at Guangzhou Port also rose to 3.39 million tonnes, an increase of 6.1% month-on-month and 12.9% year-on-year. Power utilities and end buyers are purchasing only as needed because summer requirements have largely been met and they are waiting for the next price direction.