Sichuan Coal Production Halt Shouldn’t Affect Coal Prices Nationwide

Bloomberg reported that China has suspended production at all Sichuan coal mines following a May 11 explosion that killed 28 workers and injured 18 others. The stoppages are not likely to affect coal prices nationwide.

As quoted in the market news:

“All coal mines across the province should be suspended immediately to have a comprehensive overhaul and thorough checks,” the State Administration of Work Safety said in a statement dated yesterday on its website. The province aims to close 500 small coal mines by the end of the year.

“The mine suspension isn’t likely to have any impact on coal prices nationwide,” said Jiang Weibo, a Shanghai-based analyst with Glinfo. “It would help stall local prices from further declines as Sichuan mines supply mainly to local users. The Sichuan market is pretty isolated.”

Click here to read the full Bloomberg report.