China’s Coal Futures Hit Record as Exchange Tries to Cool Rally With Fee Hike
- Supply disruptions, stockpiling ahead of summer fuel rally
- Thermal coal has surged 34% this year, reaching fresh records
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Thermal coal futures in China surged to a record high as a severe supply crunch overpowered the exchange’s effort to cool down the breakneck price rally.
Prices have rallied 34% so far this year as miners struggle to meet robust demand from the nation’s economic rebound. Safety and environmental inspections, mining accidents and an unofficial ban on Australia coal has disrupted supply and tightened the market. A recent worsening in diplomatic relations with Australia has also given the raw material another boost.