Thermal Coal Prices May Fall to Cost Line amid Coal Price Intervention Policies

SHANGHAI, Oct 28 (SMM) – The National Development and Reform Commission (NDRC) held a meeting for limiting the thermal coal prices on the morning of October 27 to further clarify the price limit details. This triggered a new round of decline in the commodity futures prices.

During the daytime trading hours of the day, most of the commodity contracts closed with losses, with the ferrous metals and chemical products leading the declines. The most active contracts of thermal coal, coke, coking coal, methanol, ferrosilicon, PVC and EG fell limit down.

Thermal coal futures also continued to fall during the night trading hours. After the opening of the night trading, the most active thermal coal contract immediately fell limit down to 1,033.8 yuan/mt, and the most active contracts of coking coal, coke and methanol fell by more than 10%.