GC Newcastle coal futures edged lower towards $150 per metric ton in early December, remaining well below a record level of $269.5 reached on October 5th, as Beijing continues to regulate the domestic power-generation fuel market. The National Development and Reform Commission, China’s top economic planner, released a plan to set annual thermal coal prices for 2022 at between CNY 550 – CNY 850 per ton, with the benchmark price adjusted for the first time to CNY 700 per ton from 2017’s CNY 535 per ton.
Since October, China set several measures aimed to curb soaring coal prices, including expanding mining production, price targets and a crackdown on hoarding. Meanwhile, demand is likely to remain elevated as winter heating season kicks in northern China and Europe. China imported 35.05 million tonnes of coal in November, their highest level of 2021.
