Coal Hovers Near 1-Year High

2026-02-18 05:17 By Jam Kaimo Samonte 1 min. read

Coal prices held above $115 per ton in late February, hovering near their highest level in a year, as expectations of resilient demand offset the longer-term global shift toward cleaner energy sources.

China, the world’s largest coal producer and consumer, commissioned 78 GW of new coal-fired power capacity in 2025, marking the highest annual addition in a decade.

The expansion underscores Beijing’s emphasis on energy security and grid stability during peak demand periods, even as non-fossil fuel generation capacity surpassed fossil fuel-based capacity for the first time.

China retains the world’s largest coal power fleet and accounts for roughly 71% of global coal capacity currently under development.

In the US, President Donald Trump has taken steps to support the struggling coal-fired power sector, allocating $175 million in federal funding to modernize six plants and directing the United States Department of Defense to procure electricity from additional facilities.



News Stream
Coal Holds Near 1-Month High
Thermal coal futures were at around $130.5 per tonne in late July, approaching its highest level in a month after touching a four-month low in late June, as supply concerns in Indonesia supported prices. Dry weather disrupted coal barging operations along the Barito River in Kalimantan, a key transport route for the country’s coal exports, with some miners reportedly declaring force majeure on affected volumes. The disruptions raised concerns over potential shipment delays from Indonesia, the world’s largest thermal coal exporter, supporting expectations of tighter near-term availability. At the same time, rising oil prices amid escalating Middle East tensions lifted broader energy markets, with concerns over possible supply disruptions adding to upward pressure on fuel costs. Meanwhile, gains remained limited by subdued demand in China, where high inventories and cautious utility buying continued to weigh on import demand.
2026-07-23
Coal Hover Near 3-Month Low
Thermal coal futures from Australia were at around $130 per tonne in July, not far from their lowest level since early March, as muted purchases from India offset a broader-based rebound for energy commodities. A weak rupee and an upgrade to the quantity of domestic production drove Indian utilities to extend its effort of reducing import dependency. This was combined with elevated levels of domestic inventories for the second-largest consumer to take in lower imports and soften bidding competition from other consumers. Still, energy commodities remained higher since March as fresh escalation between the US and Iran triggered another increase in power prices. LNG tankers held off from crossing the Strait of Hormuz after a vessel was struck by Iran. This supported the outlook that Japan and Korea, the main consumers of higher coal grades from Australia, are likely to maintain coal imports amid higher LNG prices.
2026-07-08
Coal Retreats to Pre-War Levels
Thermal coal futures fell below $130 per ton, returning to levels last seen before the Middle East conflict erupted as continued peace talks between the US and Iran raised hopes for a lasting resolution and the full reopening of the Strait of Hormuz. Investors are closely watching the latest developments in negotiations between Washington and Tehran in Qatar following a recent flare-up in hostilities around the key shipping route. Oil and natural gas prices have also retreated to pre-war levels, with analysts forecasting a global supply surplus as Middle Eastern production rebounds, reducing the need for fuel switching. Meanwhile, China’s latest five-year plan reaffirmed its "all-of-the-above" energy strategy by expanding both coal-fired power generation and renewable energy. China remains the world’s largest investor in clean energy while continuing to lead global coal expansion, accounting for 78% of new coal power capacity added worldwide in 2025.
2026-07-01