China's coking coal prices hit daily limit again on chatter about government mine inspections
The most active China coking coal contract on the Dalian Commodity Exchange jumped nearly 8% to its highest price since March 19 at 1,048.5 yuan ($146.19) a metric ton.
A document purported to be from the National Bureau of Energy calling for inspections at coal mines in eight provinces to determine whether production exceeded licensed capacity played a part in the price rise, said Simon Wu, a senior consultant at Wood Mackenzie.
"This could potentially reduce the effective supply to the market," he said.
Reuters could not verify the authenticity of a document circulating on social media from the Henan provincial government which contained inspection orders from the NBE.
A phone call to a number in the document was answered by someone who said they were following instructions from the NBE and not to call again.
The NBE did not immediately respond to a request for comment.
Coking coal prices have gained 28% so far in July after a visit to Shanxi, China's top coal production hub, by President Xi Jinping earlier this month sparked speculation about a fresh wave of supply reform.
($1 = 7.1723 Chinese yuan)
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