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Coal|Energy
Coal|Energy
coal|energy

China's coking coal prices hit daily limit again on chatter about government mine inspections

22nd July 2025

By: Reuters

  

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Prices of coking coal futures in China hit their ceiling for a second successive session on Tuesday, amid market chatter about potential government inspections in China's major coal production hubs that might lead to supply disruptions.

The most active China coking coal contract DJMcv1 on the Dalian Commodity Exchange jumped nearly 8% to its highest price since March 19 at 1 048.5 yuan ($146.19) a metric ton.

A document purported to be from the National Bureau of Energy calling for inspections at coal mines in eight provinces to determine whether production exceeded licensed capacity played a part in the price rise, said Simon Wu, a senior consultant at Wood Mackenzie.

"This could potentially reduce the effective supply to the market," he said.

Reuters could not verify the authenticity of a document circulating on social media from the Henan provincial government which contained inspection orders from the NBE.

A phone call to a number in the document was answered by someone who said they were following instructions from the NBE and not to call again.

The NBE did not immediately respond to a request for comment.

Coking coal prices have gained 28% so far in July after a visit to Shanxi, China's top coal production hub, by President Xi Jinping earlier this month sparked speculation about a fresh wave of supply reform.

Edited by Reuters

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