Amid Coal Overproduction Shutdown, China's Planners Worry About Rising Coal Prices

Amid a push to close zombie coal miners, China is now concerned about the rising price of coal.

According to sources participating in the meeting yesterday, in August this year, “on the stability of coal supply, inhibit coal prices rose too fast work plan (draft)” (hereinafter referred to as ” plans ”) had been released, the official formal draft is expected in the near future release, including start conditions, the implementation of the subject and the embodiment and the like.

“Scenario” is divided into three, two, one response mechanism. Wherein the level three response started when Bohai thermal coal prices rose 460 yuan / ton and rose for two consecutive weeks, the average daily production increase of 20 million tons, the response team includes Shanxi, Shaanxi, Mongolia’s 53 coal mines; level two, when thermal coal prices rose 480 yuan / ton, the average daily production by 30 million tons, including 66 coal mines in Shanxi, Shaanxi, Inner Mongolia and Shandong, Henan, Anhui and Jiangsu; and the level one response is the thermal coal prices rose to 500 yuan / ton, increase the average daily production 500,000 tons, involves 74 mines across the country. When the thermal coal prices fell to 490 yuan / ton and fell for two consecutive weeks, the level one policy stops; fell to 470 yuan / ton, level two stops; fell to 460 yuan / ton, level three policy response stops.

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Author: 罗臻 http://www.investinginchinesestocks.blogspot.com

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