Chinese coking coal futures climbed for a second session after a fatal blast at the Liushenyu mine in Shanxi province. Prices in Dalian spiked 5.1% before settling near the daily limit, as traders weighed a possible government clampdown on the sector following the government's policy rationale and market sentiment toward safety regulations that could tighten.

Authorities halted 109 mines that together hold 122 million tons of annual capacity, per consultancy Mysteel. The incident killed at least 82 people and tightened the market, which supplies about 4% of China's total coking output. Investors now watch whether Beijing will broaden its usual 3‑ to 7‑day shutdowns following the safety campaign on June 1.

At 11:01 a.m. Singapore, coking coal futures were 0.5% higher at 1,273 yuan a ton, a modest gain after the sharp rise. Iron ore on the same exchange fell 1.4% to $105.20, while Dalian iron ore and Shanghai steel prices slipped, reflecting broader market uncertainty in regions where production is slowing and regulatory scrutiny mounts late.

Analysts suggest that if Beijing does not extend the shutdown mandate beyond the standard 3‑ to 7‑day window, coal output will surge once inspections wrap, pushing prices lower. The incident highlights the balance regulators face between safety compliance and sustaining supply for the steel industry, which relies heavily on coking coal for global demand in steel.