China Moves To Guide Coal Prices Within Reasonable Range

China's top economic planner is moving to improve the price formation mechanism in the coal market to guide price movements within a reasonable range as the country seeks to ensure stable energy supplies

BEIJING, (APP - UrduPoint / Pakistan Point News - 24th Feb, 2022 ) :China's top economic planner is moving to improve the price formation mechanism in the coal market to guide price movements within a reasonable range as the country seeks to ensure stable energy supplies.

In a circular released Thursday, the National Development and Reform Commission (NDRC) put the relatively reasonable range for the medium and long-term trading of 5,500 Kcal thermal coal at Qinhuangdao Port at 570 Yuan (about 90 U.S. Dollars) to 770 yuan per tonne.

In full considerations of logistics and production costs, the NDRC accordingly clarified the ex-mine prices for medium and long-term trading in major coal production areas including Shanxi, Shaanxi and Inner Mongolia.

"Proposing a reasonable range is not to adopt government pricing for coal, but to establish a range regulation mechanism on the basis of market-formed prices," NDRC official Wan Jinsong said, adding that the move could enable a better combination of the roles of the market and the government to avoid drastic ups and downs in the market.

The economic planner also pledged to enhance the country's capacity to balance supplies and demands, strengthen market supervision to prevent improper interventions and timely investigate illegal market practices.