Insight
China relaxes 276-days policy to stabilise coal prices: will it work?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
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.
Other reports you may be interested in
Insight
China thermal coal: Guangdong and Fujian research trip takeaways
Indonesian exports drive China’s QHD coal prices in 2025
$1,100
Asset Report
Yimei alumina refinery
A detailed analysis of the Yimei alumina refinery.
$2,250
Asset Report
Pingdingshan alumina refinery
A detailed analysis of the Pingdingshan alumina refinery.
$2,250
