Coal price controls increase

China’s government has imposed a second round of coal price controls, as spot-market prices continued to rise despite price ceilings applied in June, the South China Morning Post reported. Under the new measures, coal sold on spot markets in Qinhuangdao, Tianjin and Tangshan will be limited at their prices as of June 19. The Qinhuangdao benchmark spot coal price reached as high as RMB1,065 (US$156) per metric ton on July 21, 24% higher than a month earlier. Other measures included a ban on coal producers selling to third parties not included in original contracts, aimed at curbing re-selling coal to non-power companies. China’s recent coal shortage has resulted in the shutting down of a number of power plants around the country. Earlier controls on coal prices have proved ineffective as they only apply to coal at the source, and cannot control rising transportation and other costs that drive up the end-user price of coal.