Asian Coal Prices Rise to Two-Year High as Indonesia Tightens Export Rules Amid Surging Demand from Middle East Conflict

Benchmark coal prices in Asia reached their highest level in almost two years on June 8, 2026, after Indonesia announced new export controls on coal and other commodities. The Indonesian trade ministry published technical regulations on June 8, 2026, covering the export of coal, palm oil, and ferroalloys.

The rules aim to centralize management of these exports under a state-owned entity and require producers to ensure sufficient domestic supply before shipments leave the country.

Com reported that the measures are expected to delay outbound coal shipments from Indonesia. Bloomberg noted the timing coincides with rising summer electricity demand for air conditioning across the region.

U.S. And Israeli war against Iran. Hostilities have disrupted the normal flow of oil and gas out of the Persian Gulf. Qatar halted LNG production on March 2, 2026. The world’s largest LNG complex, Ras Laffan, sustained damages from Iranian missile strikes on March 16, 2026.

Following the Strait of Hormuz closure, Asian energy importers and the European Union have sought alternatives to Middle East gas supply. Japan and South Korea have increased coal consumption since the conflict began. In South Korea, coal-fired power supply in April 2026 rose 40 percent, the largest increase since August 2019.

Com reported that Indonesia’s new export controls will likely push buyers toward other coal producers and support higher prices for a longer period.