Coal futures prices in China are constantly falling after the Beijing government signaled that it will continue to control the market to ease the domestic power shortage crisis.
On the Zhengzhou Commodity Exchange today (October 29), the price of coal futures at one point lost 8.7% to 960 yuan (equivalent to 150.19 USD) / ton. According to Bloomberg, this is the lowest price since September 14.
At 11:03 a.m. on the Hong Kong Stock Exchange, shares of two Chinese coal mining giants, including Yanzhou Coal Mining and China Coal Energy, fell 4% and 3.7%, respectively.
Chinese officials are urging businesses to increase coal output and lower prices to help ease the tight supply situation and help ease the country’s ongoing power shortage crisis.
Due to the impact of the energy shortage shock, many heavy industrial plants in the world’s second largest economy are having to both operate and suffer losses.
The production costs of coal miners in China are currently much lower than the spot price of coal, indicating that the price of this fossil fuel can continue to fall, the National Development and Reform Commission China (NDRC) commented on WeChat.
Bloomberg said that the NDRC is considering limiting the price that coal miners list for thermal coal, thereby helping to relieve pressure on power plants.
Beijing is also calling on coal miners to supply about 100 million tons of thermal coal by the end of the year to meet winter power generation needs.
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