CHINA’S coal prices soared to a record high yesterday over supply concerns as major coal production regions started fresh rounds of safety checks. Demand has also remained robust with power plants in northern China beginning restocking ahead of the winter heating season. The most-traded thermal coal futures contract on the Zhengzhou Commodity Exchange jumped more than 4 percent in morning trade to a record-high level of 979 yuan (US$151.63) a ton yesterday. Prices for coking coal, a raw material mainly used in steelmaking, gained more than 4.5 percent, reaching a new high of 2,896.5 yuan a ton. China’s top coal mining province, Shanxi, ordered Friday all its coal mines to carry out a two-month safety inspection and said those who failed to comply would be shut down for rectification. A State-owned coal mine with an annual output capacity of 6 million tons has already been closed for at least a month after a fatal accident occurred last week. China’s top economic planner has also initiated a fresh round of price probes at key coal mining regions, aiming to arrest illicit price hikes and stabilize the market. (SD-Agencies) |