China’s National Development and Reform Commission on Sunday said that domestic coal production had stabilised at around 12 million tons, following a series of market interventions by the state planner. China has been trying to cool down an overheated coal market after shortages led to power rationing for industrial users in many regions, boosting producer inflation in the world’s second-biggest economy.
The NDRC also said that coal inventories at power plants have been increasing quickly, standing at 129 million tons as of November 14 and expected to reach 140 million tons by the end of the month. China’s thermal coal futures have fallen to around CNY800 ($125) per ton, more than 60% lower than a record high of nearly CNY2,000 per ton in mid-October. The fall in coal prices has also pushed down prices for aluminium, steel, pulp, and coal-derived chemicals.
