Shenhua Group, one of China’s major coal producers, has set its benchmark long-term coal contract price at 590 yuan (US$96.4) per metric ton for 2014 after negotiations with power plants, Shanghai Securities News reported Friday, citing sources. The price is 40 yuan lower than that indicated by the latest rim-Bohai thermal coal price index, it said. Wang Xufeng, a coal analyst, was quoted as saying that the industry could see some panic sales following Shenhua’s price cut. With the upcoming spring festival holiday, coal inventory will rebound at Qinhuagdao port and prices could fall further.
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