Coal mines in China ordered safety probe after fatal accident

Market participants expect tighter security checks in China in the coming weeks as the national parliament is scheduled to meet from March 5.

“The accident occurred as a major national event, which will trigger large-scale safety inspections across the country and reduce short-term coal supplies to some extent,” analysts at Guojin Futures said in a note.

Although coal is critical to energy security and economic activity, he said a rapid cut in supply is unlikely.

Thermal coal prices with a heating value of 5,500 kilocalories reached as high as 1,100 yuan ($159.84) per tonne in northern Chinese ports on Wednesday, up from a one-year low of 980 yuan per tonne last week.

The most-traded Dalian coking coal futures rose nearly 6% to 2,085 yuan a tonne on Thursday, the highest since mid-June.

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