Shanxi authorities suspended 109 coal mines with 122 million tons of annual capacity after a fatal Friday-night blast at the privately owned Liushenyu mine.
Dalian coking coal futures rose for a second straight session, jumping as much as 5.1% in early trade after already hitting the daily limit on Monday.
Investors are betting the shutdowns could widen into a broader government safety crackdown on the sector, tightening supply from a key coal-producing province.
The move underscores how a single deadly accident in Shanxi can quickly ripple through China's coking coal market and lift prices.
After the deadly mine blast, how long will the resulting coal supply shock and price surge last?
With a history of safety violations, why was China's deadliest mine in a decade allowed to keep operating?