Coal price surges impact energy costs and supply stability

Global coal prices have seen significant volatility, with prices reaching US$148 per tonne on September 10, 2026. In Singapore, Economy Minister Akmal Nasrullah Mohd Nasir noted that this surge directly impacts electricity generation costs. He reported that while August saw a moderate increase to US$130.67 per tonne, recent spikes coincide with rising demand for electricity. Additionally, the minister highlighted increases in other energy commodities, including Brent crude oil and liquefied natural gas (LNG).

In China, the government has urged local coal miners to maintain stable production levels following a jump in thermal coal spot prices to a three-year high. Although China is increasing its share of wind and solar power, coal remains a critical component of its energy mix, accounting for 49.7% of power generation in the first half of the year. Analysts suggest coal will continue to serve as a flexible backstop to ensure energy security as the country transitions toward its 2030 clean energy targets.