China’s Trade Truce and Five-Year Plan Help Coal Price Recover

China’s thermal coal price has climbed to its highest level this year, as a combination of short and long-term factors lift confidence in the outlook for demand.

The usual impact of utilities restocking for winter has been amplified by protracted mine inspections to ensure safety and check excessive output. Buyers are also taking heart from the trade truce agreed with the US and its positive bearing on the economy, as well as Beijing’s softer stance on capping consumption of the dirtiest fossil fuel.