An aerial view shows machinery working in an open-pit coal mine in Ejin Horo Banner, Ordos, Inner Mongolia Autonomous Region, China. File photo: CHINA DAILY via REUTERS
China thermal coal futures fell by the limit in overnight trading, ending a surge that’s seen the fuel more than double since the beginning of September amid blackouts and power restrictions. The national development and reform commission said it is reviewing measures to intervene in prices and has “zero tolerance” for those spreading false information or collusion in the market.
The NDRC’s statement is the latest in a flurry of activity this week as officials seek to halt the rally in coal, which provides more than half the country’s energy. China has been stung by the global energy crisis, forced to cut power to large industrial users to ensure enough supplies for home heating through the winter.
City officials in Yulin, a coal mining hub in Shaanxi province, held a meeting on Tuesday afternoon to ask state-owned mines there to immediately lower prices by 100 yuan a tonne, with harsh measures being threatened for any companies that do not comply, industry publication China Coal Resource reported, without citing its sources.
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