China thermal coal futures jump on falling stocks, environmental checks
China’s most-active thermal coal prices jumped to a new record high, fuelled by expectations of more consumption in the near term and tighter environmental checks on coal mines that hit coal production.
* Thermal coal rose 4.3 percent on Friday to close at 616.8 yuan ($92.60) per tonne, in its biggest gain since March
* Recent environmental checks as well as safety inspections have dampened coal supplies and transportation of coal, one trader said
* Falling stock at ports and utilities also point to rebounding demand this week, making investors more bullish on prices, Wang Fei, an analyst with Hua’an Futures said.
* China urged local authorities in 28 northern cities to make plans to stagger raw materials transportation for some sectors in a bid to reduce pollution during winter, in a document published by the Environmental Protection ministry on Thursday.
Source: Reuters (Reporting by Meng Meng and Josephine Mason. Editing by Jane Merriman)