Surging by Over 7%, Coal Prices Nearing US$150 per Ton
Global coal prices have soared throughout this week, drawing closer to the US$150 per ton level. This trend is being driven by significant developments in China, the primary driver of prices for ‘black gold’.
According to Refinitiv data as of Friday (5/6/2026), global coal prices with two-month delivery contracts were recorded at US$147.5 per ton, a 0.31% increase compared to the previous day. This position represents the highest level since 30 March 2026, when prices reached US$148.6 per ton.
Within a single week, global coal prices surged by 7.8%, marking the best performance since the first week of March 2026 (17.45%). Positive news from China propelled coal prices to rocket by 6.87% in a single day during Monday’s trading (1/6/2026), contributing significantly to this week’s highly positive performance.
The spike occurred after a mine safety meeting in the coal-rich Shanxi province heightened supply concerns, following the suspension of production at several mines after a fatal accident last month.
The Shanxi government in northern China held a special meeting on Saturday regarding a campaign to rectify safety risks and hidden dangers in coal mines, according to local official media on Sunday. Officials in China’s largest coal production hub promised a “zero tolerance” approach to crack down on illegal practices, such as hidden tunnels, manipulation of safety monitoring systems, and illegal mining outside permitted areas.
At the end of May, a fatal mining accident at the Liushenyu mine in Shanxi killed at least 82 people. The incident triggered strict safety inspections, leading several mines to halt production and sparking fears of tight supply. Some analysts believe the scale and severity of the accident are so significant that the scope for a rapid production recovery in the short term remains limited.
Nevertheless, China’s domestic production remains high, and coal stocks at ports and power plants have increased, acting as a buffer against rising prices. Furthermore, electricity demand has not yet been strong enough to absorb the excess supply. The Chinese government previously encouraged increased coal production to maintain energy security following power crises in recent years. Consequently, domestic coal supply is abundant, which has pressured prices in the domestic market. Additionally, China’s coal imports have begun to weaken as buyers prefer cheaper domestic supplies, causing thermal coal prices at the mine level to lose upward momentum.