National Development and Reform Commission: Prices of All Medium and Long-Term Coal Contracts Shall Be Within a Reasonable Range

Published: May 11, 2022 14:46

Source: SMM

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SHANGHAI, May 11 (SMM) –The National Development and Reform Commission issued a document on May 11, saying that signing medium- and long-term coal contracts is an important means to stabilise the interests of coal suppliers and buyers and promote the coordinated development of upstream and downstream enterprises. In principle, the term of medium and long-term coal contracts is one year or more, and the government encourages and supports both parties to sign purchase and sales contracts with longer terms. Coal supply and demand parties can adopt various methods to determine the specific price level within the reasonable range of coal medium and long-term transaction prices specified in relevant national and local documents. However, no matter whether the specific price level is determined by means of "fixed price for ten days", "fixed price for one month", "fixed price for one year", or by means of "base price plus floating price", the actual transaction price of coal medium and long-term contracts should be within a reasonable range.

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