China’s NDRC seeks to restrict rapid rises in coal prices

Amid recent rapid rises in coal prices, China’s National Development and Reform Commission (NDRC) has announced that it has held a meeting with domestic coal producers, stating that coal producers need inform NDRC when they plan to raise their sales prices for coal.

In particular, thermal coal prices are to be kept below RMB 570/mt ($83.35/mt), while coal producers will need to inform the NDRC three to five days in advance if they want to increase their prices above this level.

Coal prices in China have indicated significant increases since mid-June. Meanwhile, in its financial report for the first quarter this year China Shenhua has estimated that its net profit for the first half this year will likely increase by more than 100 percent due to high level of coal prices.