(Yicai Global) Sept. 8 -- China's top economic planner is due to hold a meeting today to stabilize coal supplies and prevent excessive price gains, officials told Yicai Global.
Coal production managers from Shenhua Group, China National Coal Group, China Resources, China Huadian Corp., China Huaneng Group and others will attend the meeting of the National Development and Reform Commission.
With the deepening of supply-side reforms, 16 provinces introduced plans to cut production capacity this year, leading to sharp increases in prices over recent months. Coal hit a 17-month high in mid-August, gaining about 20 percent from June to between CNY470 (USD7.50) and CNY480 a ton.
Asked about soaring prices at the 2016 Summer National Coal Trade Fair in July, NDRC Vice Chairman Lian Weiliang said they should not rise steeply or too quickly.
A steep gain in coal prices is detrimental to capacity cuts and business transformation and will also prove unsustainable. In the event of a coal shortage resulting from strong market demand, the '276 work-day system' can be fine tuned to increase coal output.
In the first half, national coal consumption fell 5.1 percent to 97.5 million tons from a year earlier, while output fell 9.7 percent to 170 million tons.