China sets ‘reasonable’ price range for thermal coal, cites ‘lessons’ from recent power crunches
- China has set the benchmark for 5,500 kcal thermal coal at Qinghuangdao Port at 570-770 yuan (US$86.98-US$121.77)
- Beijing is trying to balance the profits of coal plants and miners after the nation was hit by crippling power outages last year
China’s top economic planning agency has set a “reasonable” price range for thermal coal for medium- and long-term trading to stabilise supply and prevent excess price volatility, which were triggers for crippling power cuts last year.
The National Development and Reform Commission (NDRC) said in a notice on Thursday it had set the benchmark for 5,500 kcal thermal coal at Qinghuangdao Port at 570-770 yuan (US$86.98-US$121.77).
“Setting a price range does not mean that we are going back to government pricing,” said Wan Jinsong, director of NDRC’s price department.
“When the coal price falls or rises excessively beyond the reasonable range, it will bring adverse effects and even endanger security and stable supply of energy. There have been many lessons in recent years.”
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China increases coal production to ensure winter supplies, easing energy shortage
