China Seen Pulling Coal U-Turn to Cool Self-Inflicted Rally
- Benchmark Qinhuangdao coal prices fell for a second week
- More than 92 percent of mining capacity can boost output: Citi
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China is continuing to loosen mining policies that caused global coal prices to surge this year, temporarily reversing some output restrictions and encouraging production to ease tight supply through winter.
The latest guidance given by regulators last week signals the government is allowing a wider range of producers to increase output, according to analysts at Citigroup Inc., China International Capital Corp. and China Coal Transport and Distribution Association. The new policy means miners that account for more than 92 percent of the country’s effective capacity will be able to raise production until the end of March, according to Citigroup.