China tightens grip on coal market as prices continue to rise
Chinese regulators shut more coal mines amid rising concern over industrial accidents as prices continue to rise for the fuel that provides half the country’s energy.
Hubei has halted all coal mining operations from June 15 to July 5 after a gas pipeline explosion in the province killed 25 people on June 13, according to a statement from the local government on Saturday. It follows Anyuan Coal Industry Group on Friday halting five mines in Jiangxi province from June 21 to July 4.
The mine shutdowns follow a spate of deadly accidents and coincide with nationwide celebrations of the 100th anniversary of the founding of the Chinese Communist Party, which begin July 1. The halts are suppressing domestic output even as strong industrial activity and high temperatures boost demand.
“This year’s peak summer season may be the most difficult year in history to maintain supply,” Fengkuang Coal Logistics said in a research note on Monday. “Coal prices will remain at a high level.”
Thermal coal futures on the Zhengzhou Commodity Exchange rose as much as 2.9% Monday to 859.2 yuan a ton, after hitting a record last month.
Rising prices have led to speculation of government intervention in the market. China’s top economic planning body specifically mentioned coal on Friday as it repeated its pledge to stabilize commodities, and the government is considering instituting price caps on the fuel.
Shanxi province’s mining hub of Yulin will establish a mechanism to regulate sales prices for all miners in the region, industry publication Thermal Coal Today reported. The price will change weekly, based on the Qinghuangdao benchmark.
Yulin has been testing a price cap on coal as part of the price curbs being mulled by the government.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation