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)