Coal Hits 9-week High

Coal increased to 139.75 USD/T, the highest since June 2026. Over the past 4 weeks, Coal gained 7.1%, and in the last 12 months, it increased 27.34%.

Coal prices climbed above $140 per ton in early September, reaching over two-month highs as robust global energy demand coincided with persistent concerns over supply. Coal remains the world’s largest source of power generation, producing nearly 11,000 TWh in 2026, while surging electricity demand is slowing efforts to displace the fuel with renewable energy. The IEA also expects coal to remain the largest single source of power generation through 2030, with no individual alternative coming close to replacing it. The prolonged Middle East conflict, which tightened global LNG supplies and drove energy prices higher, further strengthened the outlook for coal demand. Meanwhile, as many as 45 coal-fired power plants in India are operating with critically low coal stocks as electricity demand rises amid a strong El Niño, while supply has been disrupted by monsoon rains.

Coal prices rose above $131 per ton in late August, reaching their highest levels in three weeks, amid firm Asian energy demand and ongoing supply risks. China’s latest stimulus signals could offer some additional support, as measures aimed at boosting domestic demand and accelerating infrastructure investment may help strengthen industrial activity and electricity consumption. A more sustained recovery in economic activity could, in turn, support power generation and coal demand. Meanwhile, Japan’s power prices have climbed to their highest level since 2023 as a heatwave drives higher cooling demand, potentially lifting thermal generation and providing some support to coal demand. The outlook will ultimately depend on power demand, generation levels, coal inventories, and broader supply conditions.