Coal futures in China tumbles after recording multi-year highs

October 22, 2021 01:43 PM AEDT | By Arpit Verma

Coal futures in China tumbles after recording multi-year highs — Image source: Falling coal prices | Source: Copyright © 2021 Kalkine Media

China’s coal futures tumbled

The most active thermal coal futures contract tumbled the maximum of 14% to CNY1,365 per tonne on the Zhengzhou Commodity Exchange on Thursday.

At the same time, coke futures and coking coal on the Dalian Commodity Exchange were both trading nearly 6% lower on Thursday evening.

Coal fed power plants

Coal fed power plants | Source: © Sofiaworld | Megapixl.com

A coal shortage in the country has halted electricity generation in the country and spurred electricity rationing in many parts of the country.

China is one of the biggest consumers and producers of coal in the world that has increased its output to fulfill the burgeoning energy demand.

The country’s top coal miner, China Energy Group stated on Thursday that it is going to ramp up its output by about 2.26Mt from 1 October to 20 October.

Bottom Line

Thermal coal futures in China tumbled on Thursday after the government has given signals to intervene to cool down skyrocketing coal prices.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.