The prices of thermal coal sold in the port of Qinhuangdao fell 40 yuan per ton after the state set a cap on spot market prices, the National Development and Reform Commission (NDRC) said.

    Prices in the major coal producing province of Shanxi were basically stable after the price limit was imposed last week, it said.

    The government has tightened controls on spot coal prices at major ports and distribution centers in a further move designed to ensure affordable supplies of thermal coal for power plants.

    According to the government's decree, cost-and-freight thermal coal prices at the major ports of Qinhuangdao, Tianjin and Tangshan in north China may not surpass their levels of last June 19.

    Prices at the three locations on that day were 860 yuan, 840 yuan and 850 yuan per ton respectively.

    Today's statement did not indicate current price levels in Qinhuangdao. Traders, however, said thermal coal was fetching as much 1,000 yuan per ton, well above the cap.

    The NDRC said it will tighten monitoring of coal prices and publish price and sales volume data in major media every month starting immediately.

    ( 1 usd = 6.8 yuan )