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China has been ramping up its coal production since October to boost supplies and cool prices for the winter heating season, the country's top economic planning body said Monday.
China's average daily coal output hit 11.66 million tons from Nov 1 to 5, increasing more than 1.2 million tons from the end of September. The maximum daily output reached 11.93 million tons, a record high in recent years, said a statement on the website of the National Development and Reform Commission (NDRC).
The NDRC has urged coal companies nationwide to sign medium and long-term contracts for power and coal to stabilize the market. As of Saturday, all coal companies in 24 provincial-level regions had signed medium and long-term contracts.
As a tight coal supply eases, the fuel stocks of power plants are accelerating growth.
Since November, the daily coal supply to power plants has averaged 7.74 million tons. Power plants stored over 117 million tons of coal on Saturday, up about 40 million tons from the end of September.
Coal stockpiles at the Qinhuangdao port reached 5.39 million tons on Sunday, an increase of nearly 1.5 million tons from the end of September.
Coal prices will likely fall steadily in the future, with improving coal supplies and increasing storage at power plants and ports, the NDRC said.
Source: Chinadaily
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