China coal associations urge miners to ensure thermal coal supplies
China’s leading coal industry associations called on the country’s top miners to double down on ensuring thermal coal supplies to help stabilise surging prices, according to a statement posted on Thursday on an industry website.
China’s thermal coal futures have nearly doubled so far this year to 1,085 yuan ($168.66) per tonne.
Top miners should strictly execute term supply agreements including a pricing mechanism of a floating rate over benchmark prices, China Coal Industry Association and China Coal Transport and Sales Association said in a joint statement www.cctd.com.cn.
Suppliers and users shall sign up additional mid-to-long term contracts on top of existing agreements and thermal coal should be prioritised. Term agreements for 2022 supplies should be expedited, according to the statement.
Source: Reuters (Reporting by Chen Aizhu and Min Zhang in Beijing; Editing by Shounak Dasgupta)