Shaanxi, one of three major coal production bases in China, saw coal prices increase alongside concerns of possible tighter supply, after a fatal coal mine accident triggered a new wave of safety scrutiny.
The coal mine accident, which happened on June 10 in Weinan of the province and killed seven workers, has compelled local authorities to impose stricter safety checks over coal mines.
Seven coal mines in the city with high risks of coal and gas outburst were requested to stop production for self-check and self-rectification after the incident, and are only allowed to resume operation upon acceptance check and official approval from mayor.
On the same day of the accident, Shaanxi Administration of Coal Mine Safety published punishment including production suspension and penalty to a total 26 coal mines in the province, involving capacity combined at 72.75 million tonnes per annum (Mtpa).
Four mines with capacity of 19.5 Mtpa in Yulin, one major coal city in the province, were ordered suspension.
Other coal mines also slowed down production for safety concerns, helping to pull up coal prices. Three major mines under Shaanxi Coal and Chemical Industry Group were heard to have revised up coal offers by 11-39 yuan/t on June 16.
On June 16, Fenwei assessed the Shaanxi Yulin 6,200 Kcal/kg NAR thermal coal at 365 yuan/t, mine-mouth with VAT, up 4 yuan/t from a session ago and rising a total 6 yuan/t week on week.
The Yulin 5,800 Kcal/kg NAR thermal coal was up 2 yuan/t from a day earlier and 14 yuan/t from the week-ago level to 353 yuan/t, mine-mouth with VAT, on the same day.
The Shaanxi Binxian 5,500 Kcal/kg NAR thermal coal was assessed at 450 yuan/t, mine-mouth with VAT, flat day on day yet up 10 yuan/t from a week ago.
(Writing by Emma Yang Editing by Jessie Jia)
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