Beijing to avoid radical coal shift after 2016 turmoil

Subscribe us https://www.marketmagnify.com.

China will not force coal mines to cut output on a large scale if prices remain stable, the government said on Tuesday, a sign Beijing may try to avoid radical policy shifts after the upheaval caused by efforts last year to tackle excess capacity.

 

In a statement, the National Development and Reform Commission (NDRC) said provincial governments and relevant agencies would be free to decide whether to implement cutbacks at inefficient mines.As long as prices remain within the current range, the national economic state planner said it will be satisfied with market conditions and will not introduce any broader cuts. 

 

"NDRC is unlikely to introduce any form of output cut, as it caused too much turbulence to the market last year," said Zhang Wuzong, president of Shiheng Special Steel Group in Shandong, on the sidelines of parliament's annual meeting.