Coal futures prices hit an all-time high as the Shaanxi floods disrupted coal supplies in China, the Financial Times (FT) reported on the 12th.
According to the FT, coal futures traded on the Zhangzhou Commodity Exchange soared 11.6 percent from the previous trading day to record 1408 yuan (about 260,000 won) per ton, a new record high.
This is due to the closure of some coal mines due to heavy rains in Shaanxi, exacerbating the coal shortage in China.
China has been struggling with coal shortages since it banned Australian coal imports. As a result, there is a power shortage. China still relies heavily on coal-fired power generation. Michael Taylor, chief credit officer for Asia Pacific at Moody’s, a credit rating agency, said, “Although the production disruption due to the flood is expected to be temporary, the possibility of a prolonged period cannot be ruled out as we are entering the winter season when heating demand is rapidly increasing.” He added, “If the coal shortage persists for a long time, it will adversely affect China and the global economy as a whole.”
Heavy rains concentrated in Shaanxi province last weekend killed at least 15 people and left three missing, and it is estimated that more than 1.76 million people were displaced.
(Seoul = News 1)
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