China eyes steady coal prices with increased supply
Release_time:2018-05-30 15:40:37 Source:original

China's coal prices are expected to remain stable and will not soar with increased supply and intensified regulatory efforts, an official for China's top economic planner said on May 18.

Increased demand for power station coal and higher prices of steam coal futures have contributed to a coal price rebound since April, said the unnamed official at the National Development and Reform Commission.

The market, however, does not support a spike in coal prices, as the supply has been remarkably boosted, partly due to cuts in inefficient capacity, the official said, adding that China's coal prices have already retreated markedly after a streak of gains since the second half of 2017.

During the Jan-April period, output in Shaanxi, Shanxi and Inner Mongolia, the country's main coal producers, increased by 60 million tons year-on-year, and annual output there is estimated to increase by 250 million tons this year.

A surge in coal prices is also prevented by adequate stocks of coal in power plants, improved coal transport and consumption of more energy from cleaner sources, said the official.

Meanwhile, China will take multiple measures to stabilize coal prices, including adding production and introducing more efficient capacity.