China’s state planner has called on coal miners and power producers to work more closely together to stabilize prices of the commodity, following wide gyrations over the last year caused by a sector cleanup, Caixin reports. Companies on both sides of the power-generation aisle should take three major steps to bring stability to coal prices, officials from the National Development and Reform Commission (NDRC) told market players during an industry conference this week in Hebei province. Chief among those should be more efforts to sign long-term supply contracts between coal and power producers, the agency said. It also urged closer cooperation between the two kinds of companies such as equity tie-ups, and the creation of mechanisms to stabilize prices during times of gluts and shortages. “Coal prices overall are still relatively high, so the government will take steps to try and guide them down,” said Lian Weiliang, an NDRC vice chairman.
Categories