BEIJING – There is still room for China to further adjust coal prices, the country's powerful state planner said on Friday, after futures prices fell more than 9% on its investigations into producers.
In a statement, the National Development and Reform Commission (NDRC) said, "Initial results showed coal production costs are significantly lower than current spot coal prices."
The most-traded thermal coal futures contract on the Zhengzhou Commodity Exchange fell as much as 9.18% to stand below 1 000 yuan ($156.45) per tonne in early trade.
The contract last traded at 975.6 yuan per tonne, having fallen more than half from its record high of 1 982 yuan on October 19. It is up more than 80% this year.
On Friday, the environment ministry said it would take steps to cut the concentration of tiny hazardous airborne particles known as PM2.5 by an average of 4% on the year in main cities this winter.
The world's top greenhouse gas emitter's anti-smog programme is likely to face scrutiny this winter as a power crunch forces the government to secure more coal to generate electricity.
Beijing's measures to cool prices of the key power-generating fuel include stepping up output in coal producing regions and setting a target price of thermal coal.
The power crunch has forced power-hungry industries such as steel, aluminium, cement and chemicals, to cut production, while a new electricity tariff is expected to bring higher costs and put pressure on profit margins.