Chinese coal futures dropped on Monday, as the result of a prediction from a senior government official that an increase in supply would see a fall in prices, amid a rise in worries around power shortages, reported the Financial Times.
Zhengzhou-traded futures due for delivery in September fell by 7% to RMB 790 per tonne. This drop came a day after state news agency Xinhua quoted an anonymous official at China’s top economic planning agency as saying that higher production, increased imports and greater use of solar and hydropower would lead prices to “drop significantly” from July.
Prices in China surged to a record last month as shortages across manufacturing hubs in the south of the country highlighted a lack of coal supply.
You must log in to post a comment.