The price of coal for power generation has increased by approximately 40% since the beginning of 2026, driven by record demand as high natural gas prices prompt power producers to substitute coal for LNG. This surge is further exacerbated by stagnating coal exports from Indonesia, where tighter government controls on miners and domestic supply obligations have limited outbound shipments. Additionally, miners in both Indonesia and Australia are contending with export curbs and other restrictions, intensifying supply uncertainty in the global coal market [1].
The combination of robust demand and constrained supply has made it increasingly difficult for international buyers to secure reliable coal deliveries, resulting in heightened competition and record price levels. Market participants suggest that these tighter supply conditions, coupled with ongoing demand, could sustain elevated coal prices in the coming months. This outlook is particularly pronounced if there are further disruptions in LNG markets or additional policy interventions by major coal-exporting countries [1].
CONCLUSION
Coal prices have surged 40% in 2026 due to strong substitution demand from high LNG prices and ongoing export uncertainties in Indonesia and Australia. Market participants anticipate that prices may remain elevated if current supply constraints persist or if further disruptions occur.