Coal Rises on Tightening Supply
Coal futures climbed above $145 per ton, rebounding from one-month lows as tightening global supplies and the prolonged Middle East conflict continued to encourage a shift from gas to coal for power generation. Indonesia, the world’s largest exporter of thermal coal, reported that shipments fell 23% in August from a year earlier to their lowest level for the month in five years. The decline comes as global coal demand is on track to reach a record high this year amid gas supply disruptions stemming from the Iran war. Indonesian thermal coal exports have also been constrained by government production quotas, policy uncertainty, and a strong El Niño. The International Energy Agency said in its Coal Mid-Year Update 2026 that surging LNG prices caused by the Strait of Hormuz blockage are prompting economies including China, India, Japan, South Korea, and even Europe to increase reliance on coal-fired power generation.
Coal futures climbed above $145 per ton, rebounding from one-month lows as tightening global supplies and the prolonged Middle East conflict continued to encourage a shift from gas to coal for power generation. Indonesia, the world’s largest exporter of thermal coal, reported that shipments fell 23% in August from a year earlier to their lowest level for the month in five years. The decline comes as global coal demand is on track to reach a record high this year amid gas supply disruptions stemming from the Iran war. Indonesian thermal coal exports have also been constrained by government production quotas, policy uncertainty, and a strong El Niño.
The International Energy Agency said in its Coal Mid-Year Update 2026 that surging LNG prices caused by the Strait of Hormuz blockage are prompting economies including China, India, Japan, South Korea, and even Europe to increase reliance on coal-fired power generation.