Coal prices in China hit record highs as floods worsen supply crunch — RT

 Power demand in China is expected to grow as the nation enters its winter heating season. The energy situation was exacerbated by floods, which have led to a dramatic surge in coal prices.

Coal futures on the Zhengzhou Commodity Exchange rose by about 9% to a new intraday record of 1,640 yuan ($254.30) a ton on Wednesday. The most active contract, which was up by almost 20% in the previous two sessions, traded 5% higher at the midday trading break.

Heavy rainfall and flooding in China’s key coal producing province this week prompted a shutdown of the mines. The situation has improved since, with most of the mines resuming operations. Analysts at CCI say production in Ordos, Inner Mongolia rose to the highest rate this year in recent days.