(Yicai Global) July 19 -- China's National Development and Reform Commission (NDRC) has proposed new requirements to avert abnormal fluctuation of coal prices again at a July 18 press conference.

NDRC has now taken positions on coal price fluctuations four times within one month.

NDRC will take six precautions against abnormal fluctuation of coal price, said Yan Pengcheng, director of NDRC's Department of Policy Studies and its press spokesman. First is to hasten release of high-quality production capacity, second is increasing overall transport capacity to coordinate security, third is to promote extensive and full-capacity clean energy operation, fourth is fostering the signing and execution of mid- and long-term contracts, fifth is establishing and consummating the reserve system of corporate social responsibility, while sixth is actively guiding market expectations.

The causes for the staggered and tight supply and fluxes in coal prices were manifold, e.g. the rapid growth of output of coal power, steel, chemical engineering and other main coal-consuming products driven by the economic recovery.

Also, 111 million tons of coal production capacity was withdrawn in the first half year, thus satisfying74 percent of the annual target quota, he added.

Currently, sustained scorching temperatures have spurred soaring power consumption, while the coal consumption in the power plants maintains high, which drives the rise of coal price.

From early June to the present, the price of 5,500 kilocalorie per kilogram (kCal/kg) thermal coal in ports has risen by more than USD10.3 (CNY70) per ton. Mainstream traders' quotation of 5,500 kCal/kg thermal coal in Qinhuangdao port is currently above CNY630 per ton, the latest data show.