China’s top economic planner orders closure of unlicensed coal storage sites amid prolonged shortage
Published: Oct 27, 2021 10:23 AM
A coal mine in Xiaoyi City, Shanxi Province Photo: VCG

A coal mine in Xiaoyi City, Shanxi Province Photo: VCG

China's top economic planner has required major coal-producing regions to rectify illegal coal storage in an effort to crack down on hoarding amid a prolonged coal shortage. 

The National Development and Reform Commission, China's top economic planner, has urged responsible authorities in North China's Shanxi Province, Northwest China's Shaanxi Province and North China's Inner Mongolia Autonomous Region to rectify illegal coal storage sites, closing facilities that have not been approved or lack land usage, environmental protection and safety operation authorizations. 

It has been reported that a large number of unlicensed coal storage sites in the main coal producing areas are facilitating illegal traders to store coal, which has seriously disrupted the normal operation order of the coal market and caused prominent problems in safety and environmental protection.

The move comes as the latest action taken by NDRC to curb soaring coal price which will have positive impact on market prices.

The NDRC said on Sunday that thanks to increased output in Shanxi, Shaanxi and Inner Mongolia Autonomous Region, the coal price has dropped with leading coal enterprises taking the initiative to increase production.

Coal mines in Datong, Shuozhou, Mengdong, Ordos, Yulin, Tongchuan have used a number of measures to cut coal price at mines by more than 100 yuan ($15.67) per ton, with the maximum price cut of 360 yuan per ton.

With regard to coal futures, prices of the most commonly traded contracts for coal thermal coal, coking coal and coke have all fallen sharply, down 37.72 percent, 27.78 percent and 20.44 percent, respectively, since October 20, according to Wind data.