China’s national planner “cleans up” illegal coal storage sites Reuters

© Reuters. File photo: On October 31, 2010, a coal-fired power plant can be seen in Baotou City, Inner Mongolia Autonomous Region, China. REUTERS/David Gray

(Reuters)-China stated that it will “clean up and rectify” coal storage sites in some coal-producing areas in its latest move, and in its latest move to ban unapproved storage sites in response to soaring coal prices.

In a statement late Tuesday, the National Development and Reform Commission (NDRC) stated that there are many unlicensed coal storage sites around coal mines in major producing areas such as Shanxi, Shaanxi, and Inner Mongolia, which “provides convenience for illegal traders to hoard coal. “. And “seriously disrupted” the operation of the market.

Thermal coal prices on the Zhengzhou Commodity Exchange have also soared by more than 100% this year, but after cooling measures have been taken, prices have fallen by about 40% from historical highs. On Wednesday morning, it finally fell 10%, hitting the daily trading limit.

The Development and Reform Commission stated that in addition to intensifying investigations and strengthening supervision, the three districts also need to establish a legal and compliant coal storage site reporting system to ban unapproved coal storage sites.

Crack down on illegal profit-making activities such as hoarding coal and driving up coal prices using illegal coal storage sites.

China is the world’s largest coal producer and consumer, and it has been struggling to cope with supply shortages, which has led to industrial power rationing in many regions.

The country has been pushing coal mines to increase production and increase imports so that power stations can rebuild inventories before the winter heating season, but analysts say the shortage may continue for at least a few months.

Disclaimer: Converged Media I would like to remind you that the data contained in this website may not be real-time or accurate. All CFDs (stocks, indices, futures) and foreign exchange prices are not provided by exchanges, but by market makers. Therefore, prices may be inaccurate and may be different from actual market prices. This means that prices are indicative and not Suitable for trading purposes. Therefore, Fusion Media is not responsible for any transaction losses that you may suffer as a result of using this data.

Converged Media Fusion Media or anyone related to Fusion Media will not be liable for any loss or damage caused by reliance on the data, quotations, charts, and buy/sell signals contained in this website. Please fully understand the risks and costs associated with financial market transactions. This is one of the most risky forms of investment.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *