|Coal prices fall as supply rises to quell speculation
Chinese coal prices fell amid the government's efforts to replenish supply to dampen speculation.
Coke prices on the Dalian Commodity Exchange lost 1.6 percent yesterday while coking coal prices fell 1.2 percent. The Bohai-Rim Steam-Coal Price Index, which tracks thermal coal prices in north China and is updated on a weekly basis, dived to a three-week low of 601 yuan ($87) per ton this week.
The plunge came as "the government's intervention works," Zhao Menglin, an analyst at Qinhuangdao Ocean Shipping Coal Trading Market Co, told Shanghai Daily.
Shanxi Coking Coal Group signed long-term collaboration contracts with six major state-owned companies including Baosteel and Shougang Group on Tuesday, witnessed by officials from the National Development and Reform Commission.
Earlier this month, two major coal groups also signed long-term contracts with five power plants to provide fuel at around 535 yuan per ton.
The NDRC said the government would help stabilize coal prices in coming months. Coal prices had surged since the beginning of this year to way above the normal trend, according to Cui Yu'e, a steam-coal analyst.
The Bohai-Rim index rose to a 10-month high on November 2 at 607 yuan per ton, 60 percent higher than that at the start of the year.