China's National Development and Reform Commission (NDRC) together with National Energy Administration (NEA) recently sent supervision teams to key coal provinces, coal producers and major transfer ports, in a bid to guarantee the implementation of series of supply boosting and price-capping policies.
The on-site supervision involves actual implementation of production increase policy, releasing of advanced production capacity and capacity expansion, procedures of mine operation, the fulfilment and coverage of long-term coal supply contracts, and practice of "basic price + floating price " price mechanism.
The move is aimed to urge related government bodies and enterprises to identify and rectify problems in ensuring coal supply, and meanwhile crack down on those who spread rumors of coal price rises, hoard on coal and had speculative behaviors.
Major coal miners strives to boost coal supply
Major coal miners have adopted various measures to increase coal supply by optimizing coal production and marketing layout and maintain high fulfilment rates of coal supply under long-term contracts.
This came at a time when nationwide coal supply was in shortage and coal prices stayed at high levels. Coal miners strictly abode by the pricing mechanism of "basic price + floating price", and adopted direct delivery to power utilities, reducing speculations of traders.
CHN Energy Coal Trading Company cut thermal coal price by 10 yuan/t for sales to local buyers from September 17, in order to bring down the over high coal prices. It will prioritize coal supply to power plants and households for heating purpose. The groups also promised to make efforts to increase supply for winter heating peak demand.
The company bought a total 94.46 million tonnes of coal from other suppliers in January-August, up 31% from the same period last year, accounting for nearly 20% of total supply of northern ports.
Shandong Energy Group has managed to achieve above 100% fulfilment of long-term contracts since June, sparing no effort to ensure supply of thermal coal.
Jinneng Holding Group cut mine-mouth coal prices by 10 yuan/t since September 17, and it has shipped out 10.69 million tonnes of coal via railway during January-August, up 8.3% year on year.
(Writing by Lilya Li Editing by Tammy Yang)
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