Balgae-wi Emphasizes Zero Tolerance for Coal Market Disruption Such as Hoarding
"Chinese Coal Prices Expected to Plummet by Year-End" Predicted
[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese authorities are cracking down on unauthorized illegal coal storage warehouses. They also forecast that coal prices will plummet by the end of this year.
According to Chinese media such as Pengpai on the 27th, the National Development and Reform Commission (NDRC), which oversees China's economic policy, publicly warned the day before that illegal coal storage warehouses are operating in three regions: Shanxi Province, Shaanxi Province, and the Inner Mongolia Autonomous Region.
The NDRC stated that illegal coal storage warehouses disrupt market prices and cause serious environmental problems, and instructed local authorities in the affected areas to conduct thorough crackdowns. The NDRC further notified the local authorities to restore market order and to deal with all groups illegally profiting through hoarding and similar methods in accordance with the law.
The NDRC had previously warned that it would strictly crack down on illegal activities such as spreading false information related to coal, price collusion, and hoarding, applying a "zero tolerance policy" upon detection. The NDRC also enacted an emergency measure by invoking Article 30 of the China Price Law to set an upper limit on the transaction price per ton of coal.
Chinese authorities also predicted a decline in coal prices. As of the 18th, the NDRC announced that China's daily coal production reached 11.6 million tons. The NDRC explained that this is the highest level this year and represents an increase of 1.2 million tons in daily production compared to September.
Pengpai reported that as the "war on coal" accelerates, results are emerging, and the demand for coal for power generation and livelihood purposes will be effectively guaranteed.
Xiao Xinjen, Deputy Director of the Energy Research Institute under the NDRC, said, "The contradictions in coal supply and demand are greatly easing due to increased coal supply," and predicted, "After a transitional period of 2 to 3 months, coal prices will sharply decline by the end of the year." He added, "The core of the policy is coal price stability," and "Intervention in the coal market and increased production demonstrate the firm stance of the central government and the NDRC."
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