Coal Stocks Touched Limit Down as NDRC Announced to Regulate Coal Prices with All Efforts

SHANGHAI, Oct 20 (SMM) - In the face of the skyrocketing coal prices, the National Development and Reform Commission (NDRC) issued three notices on October 19, saying that it would use all necessary means to regulate the coal prices. Affected by this, the thermal coal and other futures hit limit down, and the A-share coal stocks fell broadly. While the coal-fired electricity stocks soared.

After the opening of the futures market today (Oct 20), the prices of the most-traded thermal coal, coking coal and coke futures all touched limit down.

The NDRC held a symposium regarding the ensured supply of coal in the upcoming spring and winter on how to regulate the coal prices according to relative laws and regulations. The ultimate goal is to promote the coal prices to return to a reasonable and rational range in order to ensure a safe and stable supply of energy which is key to a warm winter for the people.

The NDRC also issued a letter, saying that all coal mines in the fourth quarter shall properly carry out safety production at full capacity. All places should keep the normal production of coal mines during holidays and major events, and it is strictly forbidden to shut down the coal mines without reasonable causes, nor is it allowed to apply the "one-size-fits-all" regional shutdown of coal mines due to the accidents in individual mines. The target is to produce over 12 million mt of coal per day on the premises of safety production.