China Gridlock Pushes Coal to Four-Month High: Energy Markets
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China is driving up world coal prices as clogged roads and railways from Beijing to Tibet restrict deliveries in the world’s fastest-growing major economy while the country tries to build stockpiles ahead of winter.
A jam held up traffic for as many as 10 days along the country’s main east-west highway in August, underscoring a crisis that may buoy prices for the next two years, according to Daniel Brebner, an analyst at Deutsche Bank AG in London. The China Coal Transport and Distribution Association says it may take up to four years to ease the gridlock.