China's miners have stopped operations in commemoration of the 100th anniversary celebrations by the Chinese Communist Party later in this week. This could exacerbate an already tight market for coal and increase prices.According to coal.in.en.com, nearly 25% of the country's largest coal-producing province, Shanxi has seen 128 of its fossil fuel mines shut down. According to the local government, all 17 coal mines in Hubei have been shut down until July 5.Coal supplies are tightening with the approaching anniversary celebrations, Qi Chunyi, Dongxing Futures Co. analyst, stated that there have been a series of recent accidents and production halts in key producing regions. However, prices could rise further.China's coal futures have risen to new records as Australia's safety restrictions and import restrictions impede supply and strong economic activity fuels demand. Although the government has taken steps to cool down markets, prices are still more than 40% higher than they were a year ago.According to Qi, the celebrations could also slow down transport networks because some areas prohibit trucks carrying coal trucks from entering. To ensure cleaner air, high-polluting industrial activities like steelmaking and coal mining often have to be halted during important events.The Zhengzhou Commodity Exchange's thermal coal futures have increased for five consecutive weeks, and traded 0.6% higher at 784.8 Yuan per ton at midday on Wednesday.With the assistance of Stephen Stapczynski
