Coal Prices Surge 7% Amid China's Emergency Safety Measures

Jakarta, CNBC Indonesia - Coal prices have surged amid supply concerns from China.

According to Refinitiv, coal prices on Monday trading (2 June 2026) jumped 6.9% to US$146.15 per troy ounce. The coal price rise ended a negative trend of three consecutive days of weakness.

Yesterday’s closing price was also the highest since 31 March 2026, or over two months ago.

China’s coking coal prices surged on Monday, touching a 19-month high. The surge occurred following a mine safety meeting in coal-rich Shanxi province, which intensified supply concerns due to production halts at several mines following a fatal accident last month.

The Shanxi government in northern China held a special meeting on Saturday regarding a campaign to improve safety risk management and address hidden hazards in coal mines, according to local state media reported on Sunday.

Officials in China’s largest coal production centre pledged to implement a “zero tolerance” approach to tackle illegal practices such as concealed tunnels, manipulation of safety monitoring systems, and illegal mining outside permitted areas.

In late May, a fatal mining accident at the Liushenyu mine in Shanxi killed at least 82 people. The incident triggered strict safety inspections that caused several mines to halt production and raised concerns about tight supply.

Several analysts assessed that the scale and severity of the accident was substantial, leaving limited room for rapid production recovery in the short term.

The most active coking coal contract on the Dalian Commodity Exchange rose 7.16% to CNY 1,377 (US$203.51) per metric tonne. The contract briefly touched its highest level since 30 October 2024 at CNY 1,387.5.

The Dalian coking contract also surged 4.84% to CNY 1,993 per tonne after reaching its highest level since 8 November 2024 at CNY 2,026.5.

Meanwhile, iron ore prices weakened due to supply surplus concerns as shipments increased and seasonal demand slowed.