Coal Hits 14-Month High

Thermal coal futures climbed above $145 per ton, reaching their highest level in eleven weeks after a deadly gas explosion at a coal mine in northern China exposed an underground network of illegal labor practices and unreported coal sales, raising concerns about tighter oversight and extended supply disruptions. The incident at a mine in China’s Shanxi province led to production suspensions and triggered intensified safety inspections across the country’s largest coal-producing region. Increased regulatory scrutiny is expected to constrain near-term coal output, potentially impacting power generation and complicating Beijing’s efforts to safeguard energy security. Meanwhile, traders continued to track developments in the Middle East, where stalled US-Iran peace negotiations and the continued near-closure of the Strait of Hormuz have kept broader energy markets under pressure.

Coal increased to 140.30 USD/T, the highest since March 2026. Over the past 4 weeks, Coal gained 2.05%, and in the last 12 months, it increased 32.38%.

Thermal coal futures climbed toward $137 per ton, reaching a seven-week high after a deadly gas explosion at a mine in China’s Shanxi province prompted production suspensions and intensified safety inspections across the country’s largest coal-producing region. The accident reportedly killed at least 82 people and triggered a large-scale rescue operation involving hundreds of emergency personnel. The heightened regulatory scrutiny is expected to weigh on near-term coal output, potentially affecting power generation and complicating Beijing’s efforts to maintain energy security. Earlier this month, coal prices had generally followed declines in oil and natural gas markets amid growing optimism that a US-Iran agreement could help end the conflict and reopen the Strait of Hormuz. Reports that selected UAE liquefied natural gas tankers were able to transit through the Persian Gulf also helped ease fears of supply shortages since the outbreak of the war.