Chinese coal traders are hunting for price information on spot transactions after the National Development & Reform Commission steps up scrutiny on price index providers amid efforts to cool down overheated prices. The state planner said it would investigate providers over allegations of manipulating and fabricating price information. The NDRC also said it was considering intervening in the market to guide prices back to a “reasonable range” over the long term.
However, the heightened scrutiny has resulted in confusion among Chinese coal market participants, which have already grappled with rapid market changes and regulatory reforms. A Guangxi-based coal trader said it had stopped reading price indexes and instead relied on personal phone calls with other traders to get the daily prices.
Traders also said that providers also hid or no longer published other data, including stock levels at key ports and coal consumption at major power plants. Before the scrutiny, those data were displayed on providers’ websites or circulated widely on social media. Some providers continued publishing outdated data, which were way off real transactions, one of the traders said. A Beijing-based power analyst said now it used free-on-board (FOB) Indonesia prices, shipping fees, and others to gauge prices roughly.
