SHANGHAI, Oct 27 (SMM) – The Price Department of the National Development and Reform Commission held a meeting for limiting the thermal coal prices on the morning of October 27 to further clarify the price limit details.
I. Scope of intervention: The pithead prices and the end sales prices of thermal coal
II. Intervention method: To adopt the "base price + fluctuation range" method for the pithead prices. The intervention method in the end sales of thermal coal shall be independently determined by the provincial people's governments.
III. Price limit standard:
1. The National Development and Reform Commission has settled the benchmark pithead price at 440 yuan/mt (tax included), and the maximum increase range is 20%, namely the highest price at 528 yuan/mt. The coal production enterprises can determine the specific pithead price within the allowable fluctuation range based on the benchmark price.
2. The above-mentioned benchmark price corresponds to the thermal coal with 5,500 calories, and the benchmark price of the thermal coal with other calorific values will be calculated according to the standard of 5,500 calories.
3. The provincial people’s governments should set the end sales prices based on the pithead prices, local coal sources, circulation costs, etc.. The governments can intervene the sales prices by limiting the price differential and the utilisation rate in the circulation.
IV. Implementation time
Starting time: Right after the approval of the State Council
Lift time: May 1, 2022
If the market situation changes, the cancellation can be postponed.
The safeguard measures include the targeted import subsidies.