Coal Prices Remain Elevated on Strong Demand

Coal futures traded just below $150 per ton, hovering near a three-year high as elevated LNG prices, driven by supply disruptions linked to the Middle East conflict, continued to encourage a shift toward coal-fired power generation. With coal costing roughly 80% less than LNG, buyers in Asia and Europe have increased imports ahead of the winter season. The International Energy Agency also projected in September that global coal demand would reach a record high this year, despite ongoing efforts to transition to cleaner energy sources and the closure of numerous coal-fired power plants across Europe and North America. Meanwhile, Indonesia, the world’s leading coal exporter, tightened export restrictions, contributing to a 23% drop in shipments in August. The IEA expects Indonesian coal production to decline by more than 12 million tons this year, citing lower production quotas and policy uncertainty.

Coal futures climbed to around $150 per ton, hovering near the highest levels since September 2023 after Australia’s High Court rejected an appeal by Mach Energy Australia over the planned expansion of its coal mine in NSW. The court found that planning authorities had failed to adequately account for emissions generated by customers who burn the mine’s coal. Minerals Council of Australia executive Tania Constable said the ruling could significantly undermine investment and send a negative signal to Australia’s trading and investment partners about sovereign risk, potentially putting future supply under pressure. Meanwhile, global coal demand is expected to reach a record this year as gas supplies face disruptions linked to the Iran war. The IEA said in its Coal Mid-Year Update 2026 that higher LNG prices caused by the Strait of Hormuz blockade are encouraging economies such as China, India, Japan, South Korea and parts of Europe to rely more heavily on coal-fired power generation.

Coal increased to 152.20 USD/T, the highest since October 2024. Over the past 4 weeks, Coal gained 1.52%, and in the last 12 months, it increased 43.2%.