China's top economic planner said it won't limit spot thermal coal price by force but hopes the price can come back to the green range as soon as possible in a conference on April 28, market sources said.
Behind what's the planner – the National Development and Reform Commission – said lies the supply guarantee of sufficient production capacity.
By the end of 2017, the number of existing and under-construction coal mines totaled 4,980 across the country, involving production capacity of 4.36 billion tonnes per annum (Btpa) – existing mines were 3,907 (3.34 Btpa) and mines under construction 1,156 (1.02 Btpa).
Of that, there were 1,005 coal mines with capacity above 1.2 Mtpa, with combined capacity totaling 3.03 Btpa, accounting for 69.6% of the total capacity in the country.
Meanwhile, there were 1,782 coal mines in Shanxi, Shaanxi, Inner Mongolia and Ningxia provinces, with capacity of 2.97 Btpa or 68.2% of country's total. Coal mines in these regions are rich in resources and have high yields, and play a larger role in ensuring stable supply in the country.
Chinese thermal coal price has experienced three stages this year: steadily growing stage in January-February, gradually declining stage in February-mid-April, and rebounding stage since mid-April.
In fact, such price trend had already been predicted by Fenwei in its earlier reports.
Fenwei said supply and demand would stroke
a general balance in 2018, but effective capacity would be relatively insufficient
in some periods and areas. Coal prices were expected to move up and then fall
back to the normal range.
(Writing by Alex Guo Editing by Tammy Yang)
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