Chinese coal producers call for stable term prices

摘要

Major Chinese coal producers have called for prices to be stabilised for mid- and long-term coal supply contracts, amid pressure from power generators to push down 2020 contract prices. The coal producers want to adhere to the “base price plus foating price” mechanism to price mid- and long-term coal supply contracts, according to a joint initiative by 11 thermal coal producers, including the biggest producer China Energy Investment, as well as China Coal, Datong, Yancoal, Yitai and Shanxi Coal Chemical. They also want to ensure prices stay within the “green zone of 500-570 yuan/t”, which is consid- ered reasonable by the Chinese central government.