China May Raise Coal Contract Prices in 2022 After Squeeze
- Benchmark of 700 yuan a ton is above previous informal ceiling
- Thermal futures have fallen more than half from October record
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China plans to raise the benchmark price for long-term coal contracts in 2022 after a supply scare earlier this year, adding to inflationary pressures faced by manufacturers.
The National Development and Reform Commission drafted a plan to set the benchmark rate for thermal coal at 700 yuan ($110) a ton for long-term contracts, allowing prices to rise or fall within a 150 yuan band around it in monthly adjustments, according to people familiar with the plan. The agency is seeking opinions on the plan, the people said. The NDRC didn’t respond to a faxed request for comment.