On Thursday, the coal futures in China again saw a stumbling as the nation’s government is considering imposing new limits on prices for easing the energy crisis. Moreover, it has taken a call on miners to boost the output.
On the other hand, the Zhengzhou Commodity Exchange’s most active thermal coal contract dropped around 9.7 per cent on Thursday. It reached USD 161.48 per cent (1,033.8 yuan) a ton. It was the lowest price of the intraday since September-mid. Moreover, coal futures slipped more than 40 per cent after hitting a record on October 19.
The National Development and Reform Commission, China’s best economic planning body. It is planning to set the rate of its most renowned 5,500 NAR grade coal at USD 69 (44 yuan) a ton. It was stated by people familiar with the situation.
People spoke on anonymity that there would be a ceiling at 528 yuan. They stated, that they were not authorised to speak publicly.
The policy has arrived after China urged its miners to provide additional a hundred million tons of coal in the last three months of the year. It will help them meet the winter demands. Meanwhile, authorities are putting all their majesty behind to ensure a big supply of gas and oil.
The government of the country is using new proposals on pricing. However, that requires approval from the State Council of China’s cabinet.