China’s Coal Price Curbs Roil Industrial Commodities and Stocks
- Coal futures sink by daily limit while aluminum, iron ore drop
- Government aims to regulate price of key grade of thermal coal
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China’s move to curb coal prices to ease its power crisis reverberated across markets, sending coal futures lower by the daily limit while aluminum prices and shares in resources companies also tumbled.
Investors reacted swiftly to news that the country’s top planning body is considering capping the price that miners sell thermal coal at 528 yuan a ton ($83). The National Development and Reform Commission subsequently said in a statement on Thursday that it has studied what’s a reasonable range for coal prices with miners and power producers, without giving specific levels.