China weighs coal market intervention to end stunning rally

Asia's Tech News Daily

China weighs coal market intervention to end stunning rally

SINGAPORE (BLOOMBERG) – China’s top economic planner is studying ways to intervene in the coal market as the government tries to rein in rising prices and curtail shortfalls that are threatening energy security and economic growth.

The fuel provides more than half the country’s energy.

The National Development and Reform Commission (NDRC) said it’s evaluating measures to intervene in prices and has “zero tolerance” for those spreading false information or collusion in the market. The agency added that China planned to raise its coal output to 12 million tons a day and give the fuel priority for deliveries through ports and over railroads.

“The current price increase has completely deviated from the fundamentals of supply and demand,” the agency said in a statement on its WeChat page. The NDRC will “study specific measures to intervene in coal prices and promote the return of coal prices to a reasonable range.”

China thermal coal futures fell by the limit in overnight trading, ending a surge that’s seen the fuel more than double since the beginning of September amid blackouts and power restrictions. The dirtiest fossil fuel provides more than half the country’s energy.

China has been seeking for months to curtail the rally in coal, with little success. The government has urged miners to boost output, considered price caps, released portions of its strategic reserves and ordered state-owned energy companies to secure winter supplies at all costs. Daily production averaged 11.1 million tons in September, up from 10.1 million tons in July.

China has been stung by the global energy crisis. Limited supplies of fuel have forced the country to cut power to large industrial users to ensure there will be enough available for home heating through the winter. China and other major countries are clamoring for coal and natural gas to keep the lights on, just weeks before a key United Nations climate conference kicks off in Glasgow where leaders will discuss ways to curb emissions from fossil fuels.

Vice Premier Han Zheng called for “powerful measures” to curb speculation and hoarding in the energy sector while saying a better market-oriented system for coal and electricity prices will help ensure stable power supply, China National Radio reported on Tuesday (Oct 19). Meanwhile Beijing’s state-asset regulator urged coal producers to speed up production at mines with further output potential.

City officials in Yulin, a coal mining hub in Shaanxi province, held a meeting Tuesday afternoon to ask state-owned mines there to immediately lower prices by 100 yuan a ton, with harsh measures being threatened for any companies that don’t comply, industry publication China Coal Resource reported, without citing its sources.

Qinhuangdao, a key coal port, has reached an agreement with coal miners, power plants and railway operators to cap prices of some supplies at no more than 1,800 yuan a ton, the Economic Daily reported, citing the country’s top economic planner.

The most-active thermal coal contract on the Zhengzhou Commodity Exchange fell as much as 4.4 per cent in overnight trading after closing at a record 1,835.6 yuan a ton Tuesday.

Still, favourable supply and demand dynamics mean there’s a chance coal’s gains could continue, Dennis Ip, an analyst with Daiwa Capital Markets, said in a research note on Tuesday. “Coal-price hikes are likely to be seen approaching the winter heating season,” he said.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Fitch affirms Russia at ‘BBB,' outlook stable

Russia's 'BBB' IDRs are supported by its very strong external balance sheet and the lowest level of general government debt in the peer group Read more »

Allegro trains between Russia and Finland to be launched again on December 12 — operator

The Russian side signed a decree pertaining to passenger traffic opening on December 2 Read more »

Moscow will use every year before Expo 2030 to maximum effect, city Mayor says

This year Russia has applied to host Expo-2030 Read more »

Belavia airline says new EU restrictions will not affect its flights

By the summer season, Belavia plans to replenish its fleet by acquiring new aircraft, as well as concluding leasing agreements with companies that are not EU residents Read more »

Kazakhstan intends to implement 180 renewable energy projects by 2030

Askar Mamin recalled that in Glasgow, Kazakhstan announced its goal to increase the volume of energy from renewable sources fivefold (from 3% to 15%) by 2030 Read more »

Russia, India considering joint development of Arctic, Far Eastern hydrocarbon fields

The sides are mainly focused on energy cooperation, Yuri Ushakov said, adding that exports of Russian hydrocarbons to India are expanding, with the two countries’ mutual interest in the implementation of joint LNG projects persisting Read more »

Job growth disappoints in November, with a gain of just 210,000, despite high hopes

The U.S. economy created far fewer jobs than expected in November, in a sign that hiring started to slow even ahead of the new Covid threat, the Labor Department reported ... Read more »

Ural vehicles enjoy demand in more than 40 countries — Russian Deputy PM

The company’s share on the Russian market of all-wheel drive trucks is about 30%, Yuri Borisov said Read more »

US job growth misses expectations in Nov

The unemployment rate dropped to 4.2 per cent, the lowest since February 2020. WASHINGTON (REUTERS) – US employment increased far less than expected in November, likely as millions of unemployed ... Read more »

Investments in Karelia's Arctic districts are planned at almost $1.4 billion

More than 1,400 jobs will be offered, the region’s Governor Artur Parfenchikov noted Read more »

Over 200 FPOs given credit guarantee cover of Rs 67.91 crore in last 7 years: Narendra Singh Tomar

Representative image The government has extended credit guarantee cover of Rs 67.91 crore to more than 200 farmer producer organisations (FPOs) in the last seven years, Parliament was informed on ... Read more »

Far East, Arctic development corporation to assist Nornickel in ecology, tourism projects

According to Nornickel’s Vice President Andrei Grachev, the company’s investment program plans investments in various projects in the amount of $30 billion, where 6 billion are planned for ecology projects Read more »

Nornickel: Taimyr to host indigenous peoples' international forum in 2022

The event will be organized in the framework of Russia’s chairing the Arctic Council Read more »

WTO joint statement to enhance transparency in services industry

gettyimagesbank By Lee Kyung-min Korean firms will be able to expand their overseas business more efficiently, a move outlined in a joint initiative statement signed by 67 member countries of ... Read more »

India's services sector activity in November registers second-fastest pace of growth since July 2011: Survey

Representative image of hotel lobby. India’s services sector activity expanded at the second-fastest pace in more than a decade during November, driven by sustained rise in new work and improvement ... Read more »

(2nd LD) Nat'l Assembly passes record 607.7 tln-won gov't budget for 2022

(ATTN: ADDS finance chief’s comments, nat’l debt in last 4 paras)By Lee Haye-ah SEOUL, Dec. 3 (Yonhap) — The National Assembly passed the 2022 government budget Friday, a record high ... Read more »

Singapore retail sales rise 7.5% in October but F&B sees drop amid Covid-19 dine-in curbs

SINGAPORE – Retail sales in Singapore saw better-than-expected growth in October despite tighter Covid-19 restrictions, partly due to higher mobile phone sales from new product launches. Takings at the till ... Read more »

Daewoo Shipbuilding wins 383 bln-won order for offshore facility

By Nam Kwang-sik SEOUL, Dec. 3 (Yonhap) — Daewoo Shipbuilding & Marine Engineering Co. (DSME) said Friday it has signed a 383 billion-won (US$325 million) deal to build a wind ... Read more »

Dollar rises to 73.84 rubles on Moscow exchange

Euro moves up to 83.5 rubles Read more »

Online shopping hits record high in Oct. amid COVID-19 pandemic

SEOUL, Dec. 3 (Yonhap) — Online shopping in South Korea hit a record high in October on the back of solid demand for food delivery services and electronic goods amid ... Read more »

Imported car sales fall 31 pct in Nov. amid chip shortages

SEOUL, Dec. 3 (Yonhap) — Sales of imported vehicles in South Korea fell 31 percent in November from a year earlier as chip shortages continued to disrupt vehicle production and ... Read more »

Hiring was likely strong and employers boosted wages in November, economists say

A worker moves boxes of goods to be scanned and sent to delivery trucks during operations on Cyber Monday at Amazon's fulfillment center in Robbinsville, New Jersey, November 29, 2021. ... Read more »

China introduces restrictions for import of goods from Russia - consulate-general

Since November 29, Suifenhe railway station temporarily does not accept box railcars from Russia with goods requiring manual unloading Read more »

OPEC+ output decision due to balanced market, demand recovery, says Novak

According to the Russian deputy prime minister, such decision was made mainly due to the fact that the market was balanced, the demand was gradually recovering Read more »

Russia to scale up oil production by 109,000 barrels per day in January 2022

The next meeting of OPEC+ countries will be on January 4, 2022 Read more »

Rosatom: Northern Sea Route needs 14 icebreakers by 2030

According to Rosatom’s Deputy Director General Vyacheslav Ruksha, presently, the shipbuilding sector cannot meet the demand to satisfy the Northern Sea Route’s regular shipments Read more »

About 12 million tonnes of Taimyr coal to be shipped via Northern Sea Route after 2030

Northern Star’s project is the development of a coal deposit. The capacity at the initial stage would be 5 million tonnes a year, and the annual capacity by 2032 will reach up to 20 million tonnes Read more »

Kremlin credits ‘special' 2022 gas price for Belarus to privileges under integration deals

Based on the deal inked by the two parties, the fuel price for Minsk for 2022 was set at $128.52 per 1,000 cubic meters Read more »

Rosatom: Sibir nuclear-powered icebreaker expected in Kara Sea in January

The Sibir nuclear-powered icebreaker is the second vessel of Project 22220, built by the Baltic Shipyard Read more »

OPEC+ ministers discussing base plan of oil production recovery

OPEC+ member-states are restoring oil production at the pace of 400,000 barrels per day since August and this plan is the base one Read more »

National Assembly ratifies RCEP trade pact

SEOUL, Dec. 2 (Yonhap) — South Korea’s parliament on Thursday ratified the Regional Comprehensive Economic Partnership (RCEP), a regional free trade agreement that encompasses about one-third of the world’s gross ... Read more »

U.S. weekly jobless claims total 222,000 vs. 240,000 estimate

Initial claims for unemployment insurance rose last week but held at levels consistent with how the job market looked before the Covid-19 pandemic devastated the U.S. jobs picture, the Labor ... Read more »

OPEC+ monitoring committee makes no recommendation for January production level

The ministerial conference to start soon Read more »

OPEC+ monitoring committee starts discussing January plan — source

The ministers also to touch on the oil market report prepared by the OPEC+ technical committee the day before Read more »

Wildberries enters Turkish market

The company offers buyers in Turkey about 5.6 mln items of goods from 163,000 international brands Read more »

Focused discussion of Union State's common currency not underway, says Kremlin

According to Dmitry Peskov, the integration stage "does not imply the introduction of the common currency" Read more »

Framework for creation of common digital space established in EAEU, says Russian PM

"The creation of a whole ecosystem of digital projects, independent and integrated, which will enhance the integration cooperation, lies ahead," Mikhail Mishustin said Read more »

RSV Mikhail Somov returns from Northern Sea Route ice trap to home port

The ship has delivered cargo to 32 stations Read more »

(2nd LD) S. Korea's Q3 economic growth unchanged at 0.3 pct: BOK

(ATTN: ADDS GNI figures in last 3 paras)By Koh Byung-joon SEOUL, Dec. 2 (Yonhap) — South Korea’s economy grew at the same pace as earlier forecast in the third quarter ... Read more »

Hainan's Haikou Meilan International Airport opens new terminal

Its area of the terminal is almost 300 thousand square meters Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic