China Shenhua Energy Co. Ltd. (01088.HK, 601088.CN) is understood to have made major cuts to March coal prices, lowering spot prices by 20 yuan (US$3.26) per metric ton and contract prices by 30 yuan, Economic Information Daily reported Monday. The cuts over the last three months suggest the coal price will fall below 500 yuan per metric ton, the lowest point in years, Fenwei Energy Consulting analyst Wang Xufeng was quote as saying. The market is putting added pressure on smaller coal mines in provinces such as Inner Mongolia and Shaanxi to fold. Shenhua rival China National Coal Group Corp. is expected to also cut its coal prices by 30 yuan per metric ton, the report said.
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