Over a week has passed that the Chinese government has been looking into intervening and bringing record-high coal prices back to normal levels in a bid to relieve the country’s energy crisis. Today, China’s state planner has announced a price cap at 1,200 yuan.
In an attempt to cool the market from record-high coal price that hit 1,982 yuan on October 19, 2021, China’s state planner has set the price for 5,500 kilocalorie thermal coal at 1,200 yuan or around $187.56 a tonne.
ZC201, the most-traded thermal coal futures contract on the Zhengzhou Commodity Exchange, fell 10.38% to 1,065 yuan per tonne on Thursday.
Meanwhile, New Castle Coal last traded at $223.3 per metric ton, falling 17% from record-high at $269.5 in early October.