Coal producers allowed to hike prices

Beijing announced that it will allow one year contracts between coal producers and power companies to be renegotiated amidst recent power shortages and heightened coal prices. Prices for coal have risen from RMB 185-206 per metric ton early this year to RMB 300-320 per metric ton recently, leading some coal producers to renege on their contracts. The National Development and Reform Commission will allow coal producers in Henan, Anhui, Shandong, Shanxi and Shaanxi provinces to raise prices by as much as 8%. Although coal pricing is officially deregulated, Beijing provides guidelines to coal producers because power companies are not yet allowed to freely set power tariffs.