Insight
China’s NEA targets coal mine capacity violations
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Report summary
The central government launched guidelines to prevent disorderly low-price competition in the coal industry. This addresses the consistently weak coal market conditions. Market participants interpret this as a signal for massive production cuts and coal price recovery. Long-overdue vitality returned to the market in late July. This drove prices of both futures and spot contracts up instantly. How will the market evolve? Will the initial intention work as expected? Read the report to see our views.
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