Coal mines in China ordered safety probe after fatal accident

Coal mines in China ordered safety probe after fatal accident

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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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