China Plans to Cap Key Coal Price to Ease an Energy Crisis
- Cap to be set at 440 yuan per ton with 20% upside: people
- Limit will likely apply to power-plant term supplies: trader
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China plans to limit the price miners sell thermal coal for as it seeks to ease a power crunch that’s prompted electricity rationing and even caused a blackout in a major city last month.
The National Development and Reform Commission, China’s top economic planning body, aims to set the price of its most-popular 5,500-NAR grade coal at 440 yuan ($69) a ton at the pit-head, according to people familiar with the situation, who asked not to be identified as they aren’t authorized to speak publicly. That price, which includes taxes, is a target rate, and there will be an absolute ceiling at 528 yuan, the people said.