China power firms plan to cool spot thermal coal deals

Blaming the fast increase of spot prices of thermal coal, a grouping of some of China’s leading utilities firms plans to strictly control spot thermal coal procurement and rely more on their long-term contracted resources, Mysteel Global has learned.

“Prices for some (5,500 kcal/kg) transhipment thermal coal resources have reached nearly Yuan 600/tonne ($85.3/t), which is at odds with steady rise of (thermal coal) stocks at the domestic power plants under the unified distribution orders by State Grid,” according to a notification seen by Mysteel Global from a