Date
17 October 2017

Shenhua to cut coal price for power stations, paper says

After 50 days of negotiations, China Shenhua Energy Co. Ltd. (01088.HK, 601088.CN) finally agreed to cut the price of coal supplied to power stations, the National Business Daily reported Wednesday, citing industry insiders. The company will bring down the contract price of the 5,500-kilocalorie thermal coal to 568.8 yuan (US$93.85) per metric ton for the first quarter, from the 590 yuan proposed in December and lower than the buyers’ acceptable price of 570 yuan. Prices in the spot market have dropped sharply since Shenhua raised the price for 13 consecutive weeks until the end of December to as high as 657 yuan, the report said.

– Contact HKEJ [email protected]

TL/AC/CG

 

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