China Thermal Coal Prices Hit Three-Year High
China's benchmark thermal coal prices reached a three-year high of 986 yuan per ton due to domestic supply constraints and falling imports.
Benchmark thermal coal prices in China reached a three-year high of 986 yuan ($147) per ton in the week ending September 28, 2026. This peak follows 11 consecutive weeks of gains, with prices climbing 24% since mid-July.
The surge stems from a combination of domestic production drops and reduced foreign imports. Domestic output fell by nearly a third between June and August after a deadly accident in Shanxi province in May triggered widespread mine closures and strict safety inspections. Simultaneously, imports from Indonesia, the largest foreign supplier, decreased by 25% this year because of lower mining quotas and low river water levels that hindered shipments.
Local regulators are now working to accelerate the restart of mines to increase output by the end of the year. The price increase threatens to raise electricity costs for factories and reduce profits for power plants.
