China Coal Prices Hit New Record High Again

(Photo by Bloomberg)

[Asia Economy Reporter Yujin Cho] Coal prices are hitting record highs day after day in China, which is experiencing a severe power shortage.

According to major media on the 13th, the price of thermal coal for January delivery traded on the Zhengzhou Commodity Exchange soared to a record high of 1,640 yuan per ton at one point that day.

Coal prices have continued their strong trend, rising 12% sharply on the 11th and then climbing more than 7% at one point the previous day, trading at a record high of 1,507.8 yuan per ton.

Flood damage in major coal-producing regions of China has driven the rise in coal prices.

Industry sources said that although the local governments of Shanxi Province and the Inner Mongolia Autonomous Region ordered about 200 coal mines in their jurisdictions to increase production, over 60 mines were damaged by floods, making production increases difficult. They expect the upward trend in coal prices to continue for the time being due to supply-demand imbalances.

Meanwhile, coal imports are also increasing. The General Administration of Customs of China announced that coal imports last month reached 32.88 million tons, a 76% increase compared to the same period a year ago.

This is the largest monthly coal import volume this year and ranks fifth all-time.

China is seeking to expand coal imports by diversifying import sources, bringing in coal not only from Russia and Mongolia but also from Indonesia and Kazakhstan, while imports of Australian coal remain restricted.

However, coal imports from Russia and Mongolia face difficulties due to limited railway transport capacity, and Indonesian coal imports are challenged by bad weather conditions.

This content was produced with the assistance of AI translation services.