Coal Prices Climb Above $127/Ton for May 2026 Contracts as Oil Rally and Tight Supply Support Market

Coal prices are rising again, supported by global energy market trends. Based on Refinitiv data, the May coal contract increased by 3.23% to around US$127.75 per ton on April 23, 2026, continuing an upward trend over recent days. One of the main drivers is the rebound in oil prices, with Brent Crude moving back above US$100 per barrel amid geopolitical tensions in the Strait of Hormuz. Since coal can act as an alternative fuel for power generation, higher oil prices often push coal prices up as well.

In addition, market fundamentals remain strong. Demand from major consumers like India and China continues to grow. India is increasing coal production to support its power and steel sectors, while Chinese utilities are actively importing coal as their stockpiles decline. On the supply side, availability is tightening—especially from Indonesia—where most May shipments have already been fully booked.

At the same time, delays in retiring coal-fired power plants in the United States highlight that coal remains a key part of the global energy mix. Combined, these factors—higher oil prices, strong demand, and limited supply—are keeping coal prices on an upward path.

CNBC Indonesia. (2026, April 23). Coal prices climb above $127/ton as oil rally, tight supply, and strong demand support market. CNBC Indonesia. https://www.cnbcindonesia.com/news/20260415180536-4-727101/ri-jadi-terapkan-bea-keluar-batu-bara-nikel-ini-kata-esdm