【Supply and Gas Risks Lift Global Coal Prices as Indonesian River Disruptions Tighten Prompt Availability】

Published: Sep 2, 2026 17:22

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Global coal prices continued to strengthen through the end of August. European thermal coal quotations rose to USD 133/t, while TTF gas prices increased 6.3% week on week to USD 821.96/1,000 m³.

South African 6,000 high-CV coal rose above USD 116/t. A derailment on August 21 closed both rail lines to Richards Bay Coal Terminal, and although Transnet partially resumed traffic on August 25, reduced inbound deliveries and higher exports pushed terminal stocks down by nearly 10% to 3.83 Mt. Pakistan imported 287,000 tonnes of South African coal during the week, exceeding India’s 154,000 tonnes, with its gas shortage potentially supporting continued demand.

Indonesian 5,900 GAR and 4,200 GAR prices rose to USD 105.5/t and USD 66.5/t, respectively. Falling water levels on the Barito River prompted some producers to declare force majeure, while delays in RKAB production-quota approvals added to constraints on moving coal from mines to export terminals. Market participants reported September-loading 4,200 GAR cargoes trading at USD 70–71/t FOB Kalimantan, above quoted market levels and indicating that buyers were willing to pay a premium to secure prompt supply.

Australian 6,000 high-CV thermal coal climbed above USD 137/t, supported by higher LNG prices, hot weather in Northeast Asia and uncertainty over Indonesian supply. Australia’s hard coking coal index rose to USD 265/t amid Chinese safety inspections and slower Mongolian shipments. Russian PCI coal prices also strengthened due to Chinese demand, limited availability and higher freight costs.

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