Coal futures in China fell sharply below their 200-day moving average after hitting record highs. In China, the decline in futures accelerated after the government intervened in the markets and warned miners to increase production.
Sources speaking to Bloomberg, who did not want to be named, reported that after the National Development and Reform Commission made a decision in this direction, the prices of some coal mines in Shanxi province, where the country's highest production was last year, saw 900 yuan ($ 141) per tonne. This figure is above the ceiling price of 528 yuan ($83) that the Commission considered last month.
The Chinese government is intervening in the coal market by taking various measures after the prices have risen to a record high. While the coal production of the publicly supported miners was accelerated, the purchases from abroad accelerated and the stocks were increased. These interventions have been effective, and coal prices have fallen in recent weeks. Benchmark coal futures on the Zhengzhou Commodity Exchange fell by half after breaking a record on Jan.
Sources stated that due to the resistance of the miners, the commission will not press for further price drops.
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