China's coal prices climb as a heatwave lifts power demand and four mines are suspended

Coal demand and prices in China have risen in recent days as severe heatwaves grip most of the country. According to the China Coal Transportation and Distribution Association, in comments reported on 30 July 2026, benchmark spot prices at the port of Qinhuangdao have erased a slump from earlier this month and are on track to rise further in the coming weeks.

Li Xuegang, a senior analyst at the association, said thermal coal prices are more likely to rise than fall because the peak season for coal-fired power consumption is far from over. Analysts at Mysteel said an order suspending operations at four coal mines in Yulin, the largest producing hub in Shaanxi province, has created fresh supply concerns.

The heat is at the same time depressing hydropower and wind generation, part of which is being offset with coal. Chinese domestic output has faced setbacks since May 2026, when the deadliest mining accident in 16 years prompted authorities to step up safety inspections and suspend activity at a number of mines.