On November 9, Xu Kunlin, deputy secretary general of China’s National Development and Reform Commission (NDRC), announced that leading state-owned coal suppliers Shenhua Group and China National Coal Group inked medium and long-term coal supply contracts with China Huadian Corporation (CHD) and State Power Investment Corporation (SPIC) on November 8.
In particular, the contracts specified a certain period for coal supply and set a basic price of RMB 535/mt ($78.87/mt) for 5,500 kcal/kg thermal coal, with reasonable price adjustments allowed according to fluctuations in the market.
“The cooperation will help push forward the healthy development of the domestic coal sector and power industry and also supply-side reforms, as well as maintaining the stability of coal prices and the market,” Xu Kunlin said.