China’s National Development and Reform Commission said it discussed measures to intervene in coal prices with thermal coal producers and the industry association on Wednesday, without disclosing what price level would be imposed. The talks came after the state planner said it was considering steps to guide prices to a reasonable range over the long term.
Major producers Shanxi Coking Coal Group, Shanxi Jinneng Holding Group, and Inner Mongolia Huineng Coal and Electric announced on Wednesday that they would cap thermal coal price at CNY1,200 yuan ($187.76) per ton for the winter heating season.
Thermal coal futures contract on the Zhengzhou Commodity Exchange dropped 10% in Wednesday’s day session. It extended the slump by another 13% in night trading to CNY1,033.8 ($161.76) per ton, its lowest since September 17. The contract has fallen by 47.8% from its record high of CNY1,982 ($310.12) per ton on October 19.
