Miningweb: China coal prices rise amid safety crackdown and extreme weather

Key topics:Chinese coal prices rise amid tighter safety checks and weather risksFloods in Shanxi, Shaanxi likely to reduce coal supply in coming monthsMixed demand: extreme weather boosts use, hydropower & slow economy curb it.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..By Bloomberg News.Chinese coal prices are creeping higher as the weather becomes more unpredictable and the government expands its supervision of mines in a bid to prevent accidents and curb overproduction.Although the market for China’s mainstay fuel remains weak by historical standards, official scrutiny has introduced a new prop for prices. “The government’s ‘anti-involution’ drive to cut overcapacity with measures like safety checks could become the norm,” Bloomberg Intelligence said in a note..Next week’s Fourth Plenum in Beijing has put the sector on high alert to avoid incidents that could overshadow the policy meeting. In addition, the government has instructed high-ranking inspectors to fan out across the country from November for an “annual safety exam” across industries that should amplify efforts to improve mining practices. Shanxi, a key coal-mining province, got a special mention in the official notice for its worrisome safety record..Read more:. Michael Burry’s Scion doubles down on Chinese tech amid market rebound.Benchmark thermal coal prices at the port of Qinhuangdao rose to 723 yuan ($101) a ton on Wednesday, according to the China Coal Transportation and Distribution Association. They had troughed at a four-year low of 610 yuan a ton in June, the result of massive oversupply that Beijing’s anti-involution campaign is designed to reverse.Flood ImpactShanxi and neighbouring Shaanxi are two coal hubs already contending with floods that are likely to curtail supply in coming months, Li Xuegang, an analyst at the association, said at a briefing on Wednesday. Imports could slow as well, now that restocking for the winter is almost done, he said. Set against tighter supply is the abundance of hydropower caused by heavy rains, which is likely to crimp the need for coal. A slowing economy is also capping consumption of the fuel.The scrambled climate is playing heavily into the demand side of the equation. Unusually high temperatures in central and eastern China have kept air conditioners humming, while chilly rains in the north have forced several cities to turn on the heating about a month earlier than normal. Both should mean more coal use.The various factors leave the market biased toward more increases, but judging levels is becoming trickier.“We expect a mild gain, but how much exactly the price will be? You will get different answers.” said Li. On the WireCopper’s surge is spurring Chinese smelters to step up shipments abroad, lured by near-record prices in London while higher costs deter buyers at home. US Treasury Secretary Scott Bessent dangled the possibility of extending a pause of import duties on Chinese goods for longer than three months if China halts its plan for strict new export controls on rare-earth elements. Finance chiefs from the Group of Seven industrial nations will consider a joint response to discourage China’s planned move to control the global supply of rare earths.China’s retaliatory port fees on US-linked vessels are reverberating through markets for American crude. The levies are exposing oil shipping companies to hefty fees, making them scramble for relevant paperwork, and contributing to delays, cancellations and spiralling freight costs.The UK slapped sanctions on Russia’s biggest oil producers and two Chinese energy firms that deal with Moscow as London seeks to intensify pressure on the Kremlin over the war in Ukraine..Read more:.Miningweb: Eskom tariffs and Chinese competition drive Glencore-Merafe retrenchments, threatening thousands of jobs.South African and Chinese municipalities agreed a deal to construct a $35 million solar-panel assembly plant, a boost to Pretoria’s plans to attract international investment needed to promote district-level development.This Week’s Diary(All times Beijing)Thursday, Oct. 16:Chongqing exchange holds gas forum in Zhuhai, day 1CSIA’s weekly solar wafer price assessmentFriday, Oct. 17:Chongqing exchange holds gas forum in Zhuhai, day 2China’s weekly iron ore port stockpilesSHFE’s weekly commodities inventory, ~15:30EARNINGS: Zijin Mining, Huayou CobaltSaturday, Oct. 18:China’s 2nd batch of September trade dataGrains, sugar, cotton, palm oil, pork & beef importsOil products imports & exports breakdown; LNG & pipeline gas importsBauxite, steel and aluminum imports; rare-earth product, alumina and copper exports.© 2025 Bloomberg L.P.

Miningweb: China coal prices rise amid safety crackdown and extreme weather

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