Thermal coal futures in China hit a new record high on Tuesday as some mines were shut due to floods, exacerbating the ongoing energy crisis in the country. Coal futures traded on the Zhengzhou Commodity Exchange jumped 7% to CNY1,507 yuan ($233.62) per ton on Tuesday after gaining 12% on Monday.
The Securities Times reported that 60 of 682 coal mines in Shanxi were suspended in the past few days, although some had gradually restarted. At the same time, two mines in neighbouring Shaanxi were also affected by heavy rainfall. Shanxi and Shaanxi, along with Inner Mongolia, are China’s largest coal-producing provinces.
Coal production outages are expected to worsen China’s power crunch, which has forced some provinces to ration power. Analysts said China’s energy crisis could cut into industrial output and disrupt global supply chains, especially across Asia-Pacific.
