LANNA and BANPU extended their losses on Wednesday (October 20), as China’s government attempted to intervene and bring record-high coal prices back to a “reasonable range” in an effort to relieve the country’s energy crisis.
As of 12:03 local time in Thailand, the share price of the Lanna Resources Public Company Limited (LANNA) dropped ฿1.65/share or 6.29% to ฿24.60/share, with a trading value of 233 million baht.
Meanwhile, the share price of the Banpu Public Company Limited (BANPU) dropped ฿0.40/share or 3.15% to ฿12.30/share, with a trading value of 1,822 million baht.
China’s coal futures fell by 4.4% in early trading Wednesday as the Beijing-based government considers intervening in the market to contain rising prices and ease the country’s energy crisis.
The decline occurred after the Chinese National Development and Reform Commission (NDRC) stated on Tuesday that government intervention in coal prices was discussed during a meeting of major coal producers, the industry association, and the China Electricity Council.
“The current price increase has been wholly inconsistent with supply and demand fundamentals,” the NDRC stated. “As the heating season approaches, the price continues its irrational upward trend.”
NDRC has implemented measures to boost domestic coal production to 12 million tonnes per day and to prioritize coal shipments via ports and trains. The NDRC will also consider additional price-rigging measures and will be “intolerant” of those who spread false information or cause market turmoil.