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Singapore, June 27, 2026 – Coal markets in Asia are facing renewed turbulence as benchmark prices tumbled to their lowest level in two months, reflecting a sharp divergence in energy strategies between China and India.
On June 26, 2026, thermal coal closed at $128.5 per ton, down 0.43% from the previous session and marking a 2.3% decline over two days.
The drop underscores how regional demand shifts are reshaping the balance of power in global energy markets.
China has emerged as the dominant buyer, dramatically increasing imports to offset domestic production shortfalls.
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Official data show seaborne thermal coal imports surged to 27.65 million tons in June, a 48% year-on-year jump.
The spike was driven by rising electricity demand and tighter safety inspections that curtailed mining output after a fatal accident earlier this year.
With domestic prices in Qinhuangdao climbing to 860 yuan ($126.28) per ton, imported coal from Indonesia and Australia became more attractive, reinforcing China’s reliance on external supply.
Japan and South Korea also stepped up purchases, responding to a sharp rise in liquefied natural gas (LNG) costs.
LNG prices soared 143% after Iran’s closure of the Strait of Hormuz in February, forcing both nations to pivot back to coal for energy security.
Japan’s imports rose 33% to 7.82 million tons, while South Korea’s jumped 41% to 7.30 million tons, the highest since January.
These moves highlight the fragility of LNG supply chains and the enduring role of coal in Asia’s energy mix despite climate commitments.
India, by contrast, has taken a more cautious stance. Imports remained flat at 12.32 million tons, down from 14.14 million tons a year earlier.
Elevated prices discouraged new purchases, while the government leaned on stockpiles and accelerated renewable deployment.
Renewable generation surged 29.3% in May, contributing a record 17.9% of national electricity output.
This restraint signals India’s determination to reduce dependence on volatile fossil fuel markets, even as neighbors double down on coal.
The contrasting strategies reveal deeper structural shifts. China’s import surge underscores vulnerabilities in domestic production and the political imperative of ensuring power reliability.
Japan and South Korea’s pivot reflects geopolitical risk in LNG supply routes, while India’s restraint points toward a longer-term transition to renewables.
For global markets, the implications are stark.
Increased demand from China, Japan, and South Korea could stabilize coal prices in the medium term, but India’s retreat may cap gains.
The divergence also raises questions about Asia’s collective energy trajectory whether short-term security concerns will outweigh long-term climate goals.
At present, coal remains a contested resource its price shaped not only by supply and demand but by the strategic calculations of Asia’s largest economies.
