Coal news and updates

China’s thermal coal futures rally to record on hydropower cuts

China’s thermal coal futures jumped 4 percent on Wednesday to a record high, as outages at the nation’s top hydropower plants renewed concerns about supplies as a heatwave scorches the north.

The most-active coal futures for delivery in September were up 3.4 percent at 591 yuan ($87.00) per ton at 0224 GMT, on track for one of their best daily performances since November. Earlier in the session, they hit an all-time high of 595 yuan.

Physical prices in Qinhuangdao port were around 630-640 yuan per ton on Tuesday.

Traders said the gains were due to technical buying and a delayed reaction to news on Tuesday that China’s top hydropower plants slashed capacity to ease flooding pressure on the Yangtze River.

Export coal prices from Australia’s Newcastle terminal rose to their highest since April on Tuesday, with mining outages tightening supply amid strong northern hemisphere summer demand.

Source: Reuters