China Coal Sector Impact Assessment

Goldman Sachs assesses potential supply disruptions and price increases in the China coal sector following a major mine accident in Shanxi. Safety inspections have already suspended over 10% of domestic met coal capacity.

Key Takeaways

• 1.A major gas explosion at Liushenyu Coal Mine in Shanxi has triggered widespread safety inspections, suspending 125mnt of annual raw ore capacity.
• 2.The suspended met coal capacity is estimated at 60mnt, representing over 10% of the domestic Chinese market.
• 3.Safety control measures are expected to tighten, potentially mirroring the price spikes of 27-30% seen in late 2023 following similar accidents.

Table of Contents

• CHINA METALS & MINING
• Disclosure Appendix
• Reg AC
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Regulatory disclosures
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures

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