Russian thermal coal at Vostochny reaches highest price since late 2023
Russian 5,500-kcal thermal coal at Vostochny port rose 6.1% in the week to September 11, reaching $106.10 per tonne FOB. Logistics disruptions, expensive competing supply, higher LNG prices and tighter Chinese output supported the benchmark.
Vostochny benchmark rises 6.1% in one week
The price of Russian thermal coal with a calorific value of 5,500 kcal/kg at Vostochny port increased by 6.1% in the week to September 11, reaching $106.10 per tonne FOB. The level was the highest since the end of 2023, Vedomosti reported, citing Kommersant and data from NEFT Research.
The benchmark has gained 47.3% since the beginning of 2026 and 57.5% compared with September 2025. The scale of the increase marks a substantial recovery for a grade used as an indicator of Russian coal export economics in the Asia-Pacific market.
FOB pricing covers the coal loaded at the export port but excludes the cost of the onward sea voyage. The increase therefore improves the headline value received at the port, although the final economics for miners and traders still depend on rail access, handling costs, freight rates and the discounts required in individual destination markets.
Logistics and competing fuels tighten the market
Vedomosti identified logistics disruptions and the high price of competing coal supply as the main reasons for the rise. Indonesian coal prices have moved above their May 2023 highs, while South African coal is approaching levels last recorded in autumn 2023. Higher prices from these origins give Russian suppliers more room to raise offers without losing competitiveness.
The coal market is also receiving support from more expensive liquefied natural gas amid the conflict in the Middle East. Higher LNG costs can improve the relative economics of coal-fired generation where power producers retain the technical and regulatory ability to switch fuels.
Freight remains an important qualification. A stronger FOB benchmark does not automatically translate into the same improvement in delivered prices or producer margins. Longer voyages, vessel availability and congestion can change the relative position of Russian, Indonesian and South African cargoes across Asian and European destinations.
China and Europe reinforce demand signals
Alfa-Bank analyst Boris Krasnozhenov said coal-fired generation had increased in Europe, while supply in China had not yet recovered. Chinese coal production declined by 7.7% year on year in August, limiting the availability of domestic material in the world’s largest coal market and strengthening regional price support.
European demand is also visible in flows from Kazakhstan. Vedomosti, citing an Argus review, reported that Kazakhstan increased coal exports transiting Russia by 20% year on year in January-July 2026, to 7.8 million tonnes. That was a record for this period of the year. Most Kazakh coal is shipped to the European Union, with Poland and the Netherlands identified as the largest buyers, while Turkey is another major importer.
Maksim Shaposhnikov, an adviser to the Industrial Code fund manager, linked strong demand for Kazakh coal in the European Union and Turkey, as well as the increase in transit through Russia, to the sharp rise in European gas prices. Together with constrained Chinese production and expensive competing coal, that demand has created a supportive environment for the Vostochny benchmark. The durability of the recovery will depend on whether logistics normalize, Chinese output rebounds and LNG and gas prices retain their current support.