China Coal Producers Advance Amid Deadly Snowstorms

Nov. 16 (Bloomberg) -- China’s coal producers surged as the country’s worst snowstorms in decades disrupted supplies and boosted demand, driving up prices of the solid fuel.

China Shenhua Energy Co., the nation’s biggest coal producer by market value, rose 5 percent to 37.27 yuan at the 11:30 a.m. break in Shanghai, the most since Oct. 9. Shanxi Xishan Coal and Electricity Power Co. climbed 6.7 percent to 40.44 yuan. Yanzhou Coal Mining Co. advanced 6.5 percent to 21.38 yuan. The Shanghai Composite Index gained 2.2 percent.

“The bad weather is causing supply constraints at a time when demand is increasing,” said Wang Shuai, a Shanghai-based analyst at Orient Securities Co., in a phone interview.

China forecast blizzards today for southeastern portions of the country after northern provinces were hit by the heaviest snowfall in six decades last week. The snowstorms killed 32 people and caused 6.96 billion yuan ($1 billion) of damage, the Ministry of Civil Affairs said on its Web site yesterday. The government ordered power plants to increase their stockpiles of coal to ensure adequate fuel supplies.

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