'Eastern Cold Wave' Sees Chinese Coal Prices Near 2,000 Yuan per Ton... Six Consecutive Days of Record Highs

[Asia Economy Reporter Park Byung-hee] According to Bloomberg News on the 19th (local time), China's coal futures prices, which have been hitting record highs day after day, are aiming to surpass 2,000 yuan per ton (approximately 368,460 KRW). Due to supply shortages combined with cold weather, coal prices have set new all-time highs for six consecutive days.

On this day, coal futures prices at the Zhengzhou Commodity Exchange rose as much as 6% intraday, reaching up to 1,937.8 yuan per ton.

With coal inventories running low, the cold wave sweeping through eastern China has actually increased coal demand. As a result, the supply-demand imbalance has intensified, causing coal prices to soar. Coal futures prices have risen more than 30% just this month.

Although the Chinese government has ordered mining companies to increase coal production in preparation for winter heating demand, the upward trend in prices has not stopped.

Dennis Yip, an analyst at Daiwa Capital Markets, said, "As winter approaches, coal prices are expected to rise further," and predicted, "Coal prices will continue to increase through the fourth quarter."