BEIJING: China said on Monday it will investigate energy price index providers as it urged coal industry participants to "strictly" meet contractual obligations, in its latest bid to tame prices that have hit record highs.
The most-active thermal coal futures contract on the Zhengzhou Commodity Exchange, for delivery in January, fell more than 8% - their fourth straight daily decline - but recovered to close down 7% at 1,305.6 yuan ($204.51) per tonne.
The contract was down more than 34% from Tuesday's record of 1,982 yuan. Thermal coal futures have risen more than 150% this year.
The state planner, the National Development and Reform Commission (NDRC), said it would investigate complaints that some energy information providers, including in the coal sector, had used false transaction prices, published "hearsay" information and "fabricated" price data, and had "manipulated price indexes".
"As a result, the coal price has completely deviated from the fundamentals of supply and demand, seriously damaging the national and public interests," it said.
The NDRC said it would check for compliance and would summon index providers, and would punish any irregularities with measures such as suspension of publication or inclusion on a blacklist.
It did not name any of the information providers.
Dozens of organisations provide coal pricing data in China, including the China Electricity Council and the China Coal Transportation and Distribution Association. Local consultancies such as Fenwei Digital Information Technology, and Yimei, a trading platform owned by Helue E-Commerce Corp, also publish coal prices.
Fenwei and China Coal Transportation and Distribution Association had no comment, while Yimei was unreachable and China Electricity Council said it was outside business hours.
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