| |
0 Pages

China relaxes 276-days policy to stabilise coal prices: will it work?

China relaxes 276-days policy to stabilise coal prices: will it work?

Report summary

China introduces production flexibility to increase thermal coal supply by 6-15 Mt/month from 74 mines nationwide. The measure will kick in when Bohai Rim Steam Coal Index hits RMB460-500/t range. The move will encourage lower cost mines and help consolidation. Policy easing is notional; we expect supply discipline and 276-day work rule to continue. We do not rule out further measures if price rally persists. The risk is on policy implementation and acceptance as monitoring will become difficult. At RMB460/t, 57 Mt Newcastle high ash thermal coal can price in. However, global exporters will continue to closely watch every move China will make given the significant impact on trade balance and prices.

What's included?

This report includes 1 file(s)

  • China relaxes 276-day policy to stabilise coal prices will it work.pdf PDF - 1.10 MB


This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

Wood Mackenzie is the only coal industry service provider that offers a market outlook integrated with other sector analyses, including macroeconomics, coal supply, steel markets and gas and power markets.

Our coal analysts are based in the markets they analyse. They work with objective, proprietary data to help you maximise your current and future decision making. From market dynamics to trade patterns, we give you confidence in your strategic planning.

  • Executive Summary
    • Key points
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.

At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.