Coal storage yard in Ningbo City, China. Stock image.
Chinese coking coal rose to the highest since 2024 as the aftermath of a deadly mining accident and ongoing safety inspections kept prices elevated.
Coking coal futures in Dalian climbed as much as 1.9% to 1,486.5 yuan ($219) a ton, the highest since October 2024, before paring most of the gains. Prices are up around 14% so far this month.
A fatal blast at the privately owned Liushenyu mine in Shanxi, China’s main coal-producing region, killed at least 82 people last month and prompted intensified scrutiny of mine safety. Some coking coal mines in the province remain shut, constraining supply.
“The recovery in coal production in Shanxi has fallen short of expectations,” said Bu Tong, a senior analyst at Horizon Insights. “Safety supervision remains intensive, sustaining tightness in the spot market,” and seaborne coal prices are also catching up quickly, he said.
About 60 million tons of annual production capacity remains halted as of Friday, according to Horizon. Mines that have resumed operations are producing about 20% to 30% less than before the accident, it said.
Dalian coking coal futures added 0.1% to 1,460 yuan a ton as of 10:36 a.m. local time, while iron ore futures on the exchange declined 0.7% to 760.5 yuan a ton. Iron ore fell 0.7% to $101 a ton in Singapore. Dry bulk freight rates on the Baltic Dry Index dropped 1.8% to 2,981 points at Friday’s close in London, the sixth straight daily loss.
(By Katharine Gemmell)