Thermal coal prices firm as Indonesian supply uncertainty tightens market
Tuesday, March 17 2026 - 08:05 AM WIB
By Romel S. Gurky
Global thermal coal markets strengthened over the past week as supply constraints, particularly from Indonesia, supported prices even as major buyers China and India remained cautious on imports, according to an analysis by iEnergy Natural Resources Limited.
Chinese buyers have largely stayed away from the seaborne market due to abundant domestic supply and comfortable inventories, while Indian utilities are also relying on domestic coal and delaying spot purchases to avoid high prices.
Despite weak demand from the two largest importers, regional markets remain supported by tighter export supply and steady demand from other Asian buyers including South Korea and Southeast Asian utilities.
Indonesia, the world’s largest exporter of thermal coal, continues to influence the regional market as delays and uncertainty around production approvals have limited spot cargo availability.
Read also : Global coal exports fall for third straight week as subdued market fundamentals persist
According to the report, Indonesian benchmark coal prices increased during the week, with 6,500 GAR coal rising $3.5 to $113 per tonne, while 5,800 GAR coal climbed to $91 and 5,000 GAR coal rose to $72.50. Lower grade coal also strengthened, with 4,200 GAR reaching $60.75 per tonne, a two year high.
Elsewhere, the South African coal market remained balanced with stable export supply and cautious buyer interest, with Richards Bay 6,000 NAR coal slipping $1 to $111 per tonne.
Australian thermal coal trade remained steady, supported by demand from Asian buyers, with the Newcastle 6,000 NAR benchmark rising $1.25 to $133 per tonne, while lower grade coal softened slightly.
In the United States, coal from the Northern Appalachian Basin continued to gain support from export demand, with prices delivered to India rising $4 to $129 per tonne, also reaching a two year high.
Russian coal remained competitive in Asian markets despite rising freight costs, with 6,000 NAR coal delivered to India increasing $1 to $112 per tonne.
The report said Indonesia remains a key driver of regional coal price direction, as supply availability and export policies continue to shape trading patterns across the Asian thermal coal market.
Editing by Alexander Ginting