China considers price controls on surging coal market: Report

China considers price controls on surging coal market: Report

FILE PHOTO: A coal-burning power plant can be seen behind a factory in the city of Baotou, in China
FILE PHOTO: A coal-burning power plant can be seen behind a factory in the city of Baotou, in China's Inner Mongolia Autonomous Region, October 31, 2010. REUTERS/David Gray

China is considering imposing a cap on the price of thermal coal as it struggles to contain high energy costs ahead of peak demand over the summer, Bloomberg reported on Wednesday (Jun 9).

One idea under discussion is to cap the price at which miners sell coal, the report added, citing people familiar with the plan.

Another idea is to enforce a limit of 900 yuan (US$141) or 930 yuan a ton on the benchmark price at the port of Qinhuangdao, which would influence other markets nationwide, according to the report. No final decision has been made on whether to adopt price controls and the plans are subject to change.

Source: Reuters

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