War Eases, Coal Prices Plunge Brutally

Jakarta - Coal prices have plunged alongside the fall in oil prices. According to Refinitiv, coal prices closed on Wednesday (6/5/2026) at US$134.8 per tonne, down 3.51%. This weakening breaks the positive trend that had strengthened by 1.5% over the previous two days. The collapse in coal prices follows the easing of tensions in the Middle East, which impacted the drop in oil prices. West Texas Intermediate (WTI) oil fell 7.03% to $95.08 per barrel. Meanwhile, Brent oil declined 7.83% to $101.27 per barrel. Coal and oil are commodities that influence each other. Thermal coal prices at Chinese ports were also reported to be stable after the holiday period, amid market conditions still influenced by the tug-of-war between supply and demand. Trading activity proceeded relatively calmly post-holiday, while the market adjusts to new conditions. Prices tend to stabilise after the Labour Day holiday as coal supplies at ports begin to increase. Demand from buyers remains not strong or has not fully recovered. From India, it was reported that Coal India Ltd recorded a 9.7% decline in coal production in April, adding concerns regarding energy supply amid a surge in India’s electricity demand due to extreme heat waves. The state-owned mining company produced 56.1 million tonnes (MT) of coal in that month, down from 62.1 million tonnes in the same period last year. Meanwhile, coal distribution or sales to customers fell 2% to 63.2 MT, compared to 64.5 MT in April last year.