[SMM Coal Flash] Russian Coal Exports to China Fall 10.8% Despite Price Discounts

India will not mandate imported-coal blending at thermal power plants or require gas-based power generation this year, Power Secretary Pankaj Agarwal told Moneycontrol, citing high fuel costs and a focus on domestic coal production and logistics. Coal stocks at thermal power plants fell to 18.6 million tonnes as of September 30, 2026, from 25.4 million tonnes at the beginning of September. The government expects inventories to recover over the following two weeks as supply disruptions ease. It has also directed captive power plants to offer surplus electricity to the grid.

Pakistan inaugurated Phase III of the Thar Coal Block II project on October 5, raising the mine’s annual production capacity from 7.6 million tonnes to 11.2 million tonnes, according to Sindh Chief Minister Murad Ali Shah. The 3.6 million-tonne annual capacity increase will enable Lucky Electric Power Company’s 660 MW plant to fully switch from imported coal to Thar coal. The expansion is expected to reduce Pakistan’s reliance on imported fuel and save around $220 million in foreign exchange annually.

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) is preparing a new tax incentive scheme to support coal downstreaming projects, including coal-to-methanol, DME and fuel projects. The scheme is being adjusted following the implementation of the 15% global minimum tax. ESDM Deputy Minister Yuliot Tanjung said the government could provide tax incentives of around 7% from the 22% corporate income tax rate, allowing investors to receive tax relief while maintaining an effective tax rate of 15% in Indonesia.