A dramatic surge in coal prices in China is beginning to cool as top production hubs recover from the impact of floods, signalling a reprieve in the nation’s energy crisis.
Most coal mines shuttered as a result of heavy rainfall in northern China’s Shanxi province have now resumed operations, while output is improving in the neighbouring Shaanxi hub. Daily production in Ordos, Inner Mongolia jumped to the highest rate this year in recent days, according to analysts at CCI.
Coal futures on the Zhengzhou Commodity Exchange pared gains Wednesday after earlier rising about 9 per cent to a new intra-day record of 1,640 yuan ($254.30) a ton. The most-active contract, which jumped almost 20 per cent in the previous two sessions, traded 5 per cent higher at the midday trading break.
