Morning Bites (part 1)

🪨 China has suffered its deadliest coal mine accident since 2009, Bloomberg reports. The gas explosion on Friday night occurred at the 1.2mnt Liushenyu coking coal mine in the Shanxi region, killing at least 82 miners and injuring 128 more. Following the accident, China's coking coal futures prices surged ~8% to ‌hit their daily upper limits

Despite the small size of the Liushenyu mine (~0.2% of local coking coal supply and ~0.4% of global seaborne market), the dramatic nature of the event in terms of casualty numbers has already triggered an intense wave of safety inspections across the entirety of the Shanxi region (~1/3 of China’s total coal supply). In our view, the wide-ranging security checks are likely to provide support both to global coking and thermal prices, especially given seasonally high consumption in the summer and upbeat demand for coal after the escalation of US-Iran conflict

#coal