Thermal coal futures rose above $140 per ton, marking their highest level in nine weeks, after a deadly gas explosion at a coal mine in northern China exposed an underground network of illegal labor and unreported coal sales. The incident has heightened fears of stricter regulatory oversight and prolonged supply disruptions.
The explosion occurred at a mine in China’s Shanxi province and prompted production halts, along with stepped-up safety inspections across the country’s largest coal-producing region. The resulting regulatory clampdown is expected to curb near-term coal output, with potential repercussions for power generation and added complications for Beijing’s efforts to ensure energy security.
At the same time, traders are closely monitoring developments in the Middle East, where stalled US–Iran negotiations and the ongoing near-closure of the Strait of Hormuz continue to weigh on broader energy markets.