China asks coal miners to cap prices for 2017 supply contracts: sources
Government is trying to stabilise soaring prices resulting from its forced curbs on output of polluting energy
The central government has asked the nation’s top coal miners to cap their 2017 supply contracts at or below current spot market levels, sources said, a highly unusual move that reflects Beijing’s growing panic about runaway prices.
The National Development and Reform Commission At an emergency meeting on Thursday asked miners to agree to set the prices for their 2017 long-term supply contracts at or below 12 cents per kilocalorie for 5,000 kcal thermal coal and for 5,500 kcal thermal coal, two sources who were briefed on the meeting told Reuters on Friday.
Those prices are equivalent to 600 yuan (HK$685) per tonne and 660 yuan per tonne respectively, according to Reuters calculations.
This was the third meeting that the NDRC, China’s top economic planner, has held with the coal industry in a week and the participants included state-owned Shenhua Group Corp, the nation’s largest miner, the sources said.
The sources asked to remain anonymous as they were not authorised to speak to the press.
The NDRC did not respond to requests for comment.
