Newcastle coal futures were near $160 per tonne in September, hovering close to three-month highs, lifted by increases in other energy benchmarks and signs of cutbacks in supply. LNG prices rose globally after Chevron was unable to reach agreements with unions and prevent strikes in Australian export facilities, raising the outlook for coal-induced power production. Additionally, the accumulation of steady support measures from the Chinese government could spur a slight rebound in economic activity and infrastructure construction in the country, pinning demand for energy. Additionally, bets of possible production curbs for steel and aluminum drove blast furnaces and smelters to undercut controls and turn up production in the short term, increasing demand for coking and thermal coal. Meanwhile, Chinese safety inspectors suspended activity in 13 coal mines in Shaanxi following a series of workplace accidents, pressuring supply.
