2. Steam coal prices climb to two-year high

The Bohai-Rim Steam-Coal Price Index rises for the ninth consecutive week on Friday, gaining 60 yuan per tonne on the week to reach its highest level in more than two years.

The Bohai-Rim Steam-Coal Price Index, a measure of domestic coal prices, rose for the ninth consecutive week on Friday, gaining 60 yuan per tonne on the week to reach its highest level in more than two years. Steam coal price increases come as a severe drought along the Yangtze River in central China restricts hydroelectric production and coal power plants stock up on fuel in preparation for peak summer months. Daily prices of coal with a heating value of 5,500 kilocalories per kilogram NAR rose to between 825 yuan and 835 yuan per tonne last Friday, while 6,000 kcal/kg coal rose by 5 yuan to 875 yuan per tonne, according to industry data website China Coal Resource.