Market participants in the country are anticipating more upside for prices in the month ahead with supply constraints unlikely to ease anytime soon, while prices for seaborne coking coal continue to head north. The sustained strength in the Chinese steel market is an additional factor for this.
Metal Bulletin’s assessment of prices for domestic hard coking coal in China’s Shanxi spot market, delivered to Tangshan, was 1,420-1,750 yuan ($217-268) per tonne for the first week of September.
This compares with 1,330-1,570 yuan per tonne a month earlier
“Ahead of the 19th National Congress [of the Communist Party of China] on October 18, safety inspections at coal mines have been very strict, especially in the wake of recent mining accidents,” a Chinese trader said.
At least four mining accidents took place in August, three of which had caused fatalities, which intensified the magnitude...