China’s National Development and Reform Commission stated on Sunday that joint efforts from producers, distributors and downstream users helped to improve the domestic coal supply situation significantly, adding that coal prices have also stabilised. According to the NDRC, China’s coal production averaged more than 11.5 million tons/day for a few straight days since mid-October.
Meanwhile, coal supply to the key coal-fired power plants hit a record high of 8.32 million tons/day. Coal inventories at Chinese power plants also rose to 106 million tons from roughly 78 million tons in late September. The NDRC projects coal stockpiles at power plants to surpass 110 million tons by the middle of the week.
On the Zhengzhou Commodity Exchange, January thermal coal futures contract dropped 9.26% to CNY925.2 ($144.5) per ton early on Monday. The contract has plunged more than 53% since its high of CNY1,982 ($309.6) on October 9. Spot prices for thermal coal with an energy content of 5,500 kilocalories have dropped to below CNY1,200 ($187.4) per ton at mines and to less than CNY1,500 ($234.3) per ton at ports, the state planner said.
