China to probe energy index providers in bid to tame coal prices
BEIJING: China has said that it will investigate energy price index providers, as it urged the coal industry participants to ‘strictly’ meet contractual obligations, in its latest bid to tame prices that have hit record highs, Arab News reported.
The most-active thermal coal futures contract on the Zhengzhou Commodity Exchange, for delivery in January, tumbled more than 8 per cent, their fourth straight daily decline, but recovered some losses to close down 7 per cent at 1,305.6 yuan ($204.51)/tonne.
The contract was down more than 34 per cent from Tuesday’s record of 1,982 yuan. Thermal coal futures have risen more than 150 per cent this year.
The state planner, the National Development and Reform Commission (NDRC), said it would investigate complaints that some energy information providers, including in the coal sector, had used false transaction prices, published ‘hearsay’ information and ‘fabricated’ price data, and had “manipulated price indexes”.
“As a result, the coal price has completely deviated from the fundamentals of supply and demand, seriously damaging the national and public interests,” it said.
The NDRC said it would check for compliance and would summon index providers, and would punish any irregularities with measures such as suspension of publication or inclusion on a blacklist.
It did not name any of the information providers.
Dozens of organisations provide coal pricing data in China, including the China Electricity Council and the China Coal Transportation and Distribution Association.
Local consultancies such as Fenwei Digital Information Technology, and Yimei, a trading platform owned by Helue E-Commerce Corp, also publish coal prices.
In September, authorities banned a coal trading firm from publishing daily prices and market news as part of efforts to regulate commodities markets and tame red-hot prices.
Beijing has in recent months issued new rules for commodity price indexes and has said regulators would suspend the activities of those failing to comply.
The NDRC also urged coal firms to strictly meet contractual obligations and asked them to strengthen the credit supervision of medium- and long-term contracts.
The NDRC said it would urge upstream and downstream coal companies to sign mid- and long-term contracts for power and coal and “give full play to the medium- and long-term coal contracts to stabilise the market”.
On Monday, the China Coal Industry Association urged member companies to boost output while ensuring mining safety, to guarantee supplies during winter, to promote “rational” coal prices, to execute medium- and long-term contracts, and to sign 2022 contracts in advance.
Climate campaigners are hoping China, the world’s top miner and consumer of coal and the biggest emitter of greenhouse gases, can be persuaded to start cutting coal consumption earlier than its target of 2026, but severe energy shortages have put the government under pressure to step up production of the fuel.
China is pushing miners to ramp up production and is increasing imports so power stations can rebuild stockpiles for the winter, but analysts say shortages are likely to persist for at least a few months.
China’s securities regulator last week asked futures exchanges to raise fees, restrict trading quotas and crack down on speculation.
Today's Gold Rate in UAE on, 8th December 2021
Dubai: Today Gold Rate in UAE (8th December, 2021) 24 Carat is AED...
AED TO PKR: Today UAE Dirham to PKR on, 8th December 2021
KARACHI: The average customer rates of buying and selling of UAE Dirham...
Today's Currency rates in Pakistan - Euro, Pound, Dollar rates on, 8th December 2021
Karachi: Latest Currency Rates in Pakistan today on 8th December 2021, Check updated...
Bitcoin to PKR: Today BTC TO PKR rates on, 8th December 2021
Karachi: Today 1 Bitcoin to PKR (BTC to PKR) according to the...
SAR TO PKR: Today Saudi Riyal to PKR on, 8th December 2021
KARACHI: The average customer rates of buying and selling of Saudi Riyal...