China to Keep Coal Price Cap in 2023 as Fuel Supply Fears Linger
- Authorities set 675 yuan a ton benchmark for annual contracts
- Supply to power plants to continue to be prioritized
A coal depot near a power station in Jiaxing, Zhejiang province, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China will extend a limit on thermal coal prices in 2023 and penalize suppliers who renege on contracts as it continues to expand use of the fuel to avoid any new energy crunch.
The National Development and Reform Commission, the country’s top economic planning body, has set a benchmark for annual contracts for next year at about 675 yuan ($92.85) a ton and has asked producers to finalize pacts by Nov. 25, according to a notice sent to companies and seen by Bloomberg News. Specific price caps for cargoes will fluctuate above and below the benchmark dependent on costs of production, transportation and other factors.