SHANGHAI: Several coal producers in China’s Inner Mongolia region have reduced thermal coal prices to under 1,000 yuan ($156) per tonne, the country’s National Development and Reform Commission (NDRC) said on Tuesday.
Such price levels are well below the 1,200 yuan near-term price target trading and power sources last week said the NDRC had set as it leads the Chinese government’s efforts to bring down coal prices and ease widespread power shortages.
Four producers - Yitai Group, Mengtai Group, Huineng Group and Xinglong Group - in Inner Mongolia, China’s second-biggest coal producing region, have “taken the initiative” to lower ex-pit prices for 5,500 kilocalorie thermal coal to below 1,000 yuan, the NDRC said.
Thermal coal futures on the Zhengzhou Commodity Exchange were trading up 0.5% at 902.80 yuan per tonne as of 1354 GMT in Tuesday’s night session, having more than halved from a record high of 1,982 yuan on Oct. 19 after the NDRC said it was studying ways of intervening in coal prices.
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