19 August 2019

China Coal to cut March prices by 30 yuan/ton, paper says

China Coal Energy (601898.CN, 01898.HK) has decided to reduce its March contract prices by about 30 yuan (US$4.88) per metric ton for all types of thermal coal, with the price of benchmark 5,500-kilocalorie coal lowered to 530 yuan per metric ton, China Securities Journal reported Wednesday, citing industry insiders. The move came after a 20 yuan cut in spot coal prices by major competitor China Shenhua Energy (601088.CN, 01088.HK) last Friday. A source at a power plant was quoted as saying that the cuts will make imported coal less competitive but power firms will still keep using imported coal lest domestic coal prices surge again, as happened in the fourth quarter last year.

– Contact HKEJ at [email protected]



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