China may increase coal prices next year

The National Development and Reform Commission (NDRC) has set the benchmark price for thermal coal at 700 yuan ($110) per ton, and prices are within the 150-yuan band around that price, adjusted on a monthly basis, sources familiar with the matter told Bloomberg. He drafted a plan that allowed him to fluctuate. Sources noted that the organization sought comments on the plan. The NDRC did not respond to questions on the matter.

Benchmark coal futures in China rose strongly after this draft plan. According to Caixin's report, this step will be the first increase since the contracts were launched in 2017. The proposed benchmark price is well below the record levels seen this year, but above the historical norm in the market with a long unofficial 600 yuan ceiling.