China has again urged coal suppliers and buyers to sign more medium- and long-term contracts, amid robust demand for the fuel during the peak winter-heating season.
The National Development and Reform Commission (NDRC) said in a document published on November 29 that medium- to long-term contracts should make up 75% of supply deals signed between coal miners and power firms.
It added that railways, ports and shipping firms should make handling such contract business a priority. Contracts should run for at least a year.
The NDRC had already ordered coal companies and utilities in April to fix 75% of their total coal purchases through long-term contracts.
The NDRC also warned that contracts must be strictly fulfilled, and that it would strengthen supervision of contracts of more than 200,000 tonnes. Coal and power firms should fulfill at least 90% of long-term contracts that have been inked, added the commission.
On November 29, the Fenwei CCI Thermal index for domestic 5,500 Kcal/kg NAR coal traded at Qinhuangdao port was assessed at 683 yuan/t FOB with 17% VAT, rising 3 yuan/t day on day and up 13 yuan/t week on week.
(Writing by Jessie Jia Editing by Harry Huo)
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