China’s coal futures hit record as exchange tries to cool rally with fee hike
Prices have rallied 34 per cent so far this year as miners struggle to meet robust demand from the nation’s economic rebound.
By Krystal Chia | Bloomberg
Prices have rallied 34% so far this year as miners struggle to meet robust demand from the nation’s economic rebound. Safety and environmental inspections, mining accidents and an unofficial ban on Australia coal has disrupted supply and tightened the market. A recent worsening in diplomatic relations with Australia has also given the raw material another boost.
Futures reversed a drop earlier Tuesday morning after authorities raised trading fees, typically a step that’s taken to cool markets. Trading fees for iron ore futures were also increased on Tuesday.
“The market has been unusually explosive,” said Huatai Futures Ltd. analyst Wang Haitao. Inspections in major coal-producing regions have been rife with corruption investigations in Inner Mongolia, overproduction probes in Shaanxi province, and environmental checks in Shanxi province. …Full Story