View of piles of coal on a quay in Rizhao, East China's Shandong Province Photo: cnsphoto

China's economic planners investigated and punished Yulin Coal Trade Center, in Northwest China's Shaanxi Province for releasing false information on coal prices.

As the coal price continues to rise in China, responsible departments have issued guidelines and action plans to ensure coal supply and price stability to guarantee the regular operation of the market.

After having monitored that Yulin Coal Trade Center has released false information on coal pricing, the Yulin municipal government of Shaanxi set up an investigation group for public opinion on coal price rises, and summoned the main person in charge of the center, according to an announcement by the National Development and Reform Commission (NDRC) on Wednesday.

Following verification, Yulin Coal Trade Center issued information inconsistent with the official guidance, and the company did not obtain the license to publish news information on the internet, said NDRC.

The investigation team ordered the company to stop updating and releasing news about coal prices and market operations, and temporarily shut down two public accounts operated by the company. At the same time, Yulin Coal trade Center made a commitment that it will no longer release false information through any channels.

The price of coking coal futures ended at 3,116 yuan per ton on Wednesday at the Dalian Commodity Exchange, which announced that from Thursday it will raise the fee rate of coking coal and coke related contracts. 

Pushed by the influence of production restriction policy and demand boost, the futures of coking coal, thermal coal and hard coke all hit a record high.

The import of coal from Mongolia has been restricted due to pandemic-related precautionary measures.  

A Chinese and Mongolian joint committee on economy, trade, science and technology held a meeting on Wednesday, in which the Mongolia government representative introduced its prevention and control measures in the border areas with China relating to COVID-19, in the hope of increasing the number of vehicles carrying coal going through the customs. 

Mongolian authorities also put forward a proposal to agree as soon as possible on provisions for the transport of coal by containers in order to begin transport work at the earliest possible date.

Global Times