China Mulls Coal Price Cuts to Ease Burden on Power Plants
- NDRC wants domestic benchmark to drop below 600 yuan a ton
- Utilities under pressure to deliver 10% cut to power prices
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China is seeking to lower domestic coal prices to aid power producers, and has proposed that miners bring the benchmark grade to below 600 yuan ($87) a ton, according to people with knowledge of the matter.
The National Development & Reform Commission made the proposal to coal producers after six major utilities sought the government’s help to reduce their raw material costs in order to deliver a cut to power prices, the people said. China plans to lower electricity prices for industrial and commercial users by 10% this year.