Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list

CNCA head calls for production cuts to boost China's ailing coal sector

Coal | Emissions | Electric Power | Emissions | Renewables | Natural Gas | LNG

CERAWeek refelctions: Fuel diversity in focus for an energy-hungry world


Platts Global Coal Alert

Renewables | Natural Gas | Fuel Oil | Utilities

Central American Energy Conference, 22nd Annual

Coal | Thermal Coal

More Chinese ports delaying Australian thermal coal imports: sources

CNCA head calls for production cuts to boost China's ailing coal sector


China's local governments in coal-rich provinces should try to reduce coal production by at least 10% during the second half of this year as an oversupplied market has led prices to tumble to multi-year lows, the head of China National Coal Association said Thursday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

"It is imperative to reduce output to ease oversupply pressure, otherwise the market could worsen further," said Wang Xianzheng, chairman of the CNCA, at an industry forum held in the northeastern coastal city of Dalian.

The government should also look at curbing coal imports with high sulfur content and lower heating value, and restrict the sale and use of imported coal with ash above 16% and sulfur above 1% in coastal metropolitan areas, Xianzheng said.

Customs tariffs for both imports and exports should be "adjusted" so as to encourage imports of higher-quality coal into the southeastern coastal provinces, and support large domestic coal groups to export coal to other countries, he said.

China currently levies no import tariffs on coal but imposes a 10% duty on exports. The country's coal imports rose 0.9% year on year to 160 million mt in the first six months of this year, including 36.2 million mt of lower-grade lignite, up 19.6% year on year.

Trade sources said that the customs department has been recently refusing to grant clearances for imported coal with more than 1% sulfur content in some areas.

Additionally, Xianzheng urged local governments to alleviate the burden of coal miners by cleaning up various taxes and fees, while enhancing financial support.

More than 70% of China's coal companies are making losses and more than half of them are struggling to pay worker wages, he said.

Growth in China's coal consumption has slowed since the second half of 2012, amid a slowing economy and government efforts to improve air quality.

While authorities have shut hundreds of small, unsafe and inefficient mines, many new large-scale mines are still being built.

The Fenwei/Platts CCI 1 index for domestic 5,500 kcal/kg thermal coal traded at Qinhuangdao on an FOB basis was assessed down Yuan 1.50/mt day on day at Yuan 476/mt ($76.87), inclusive of VAT, Thursday -- a drop of 23.5% from the start of the year, data showed.

Fenwei Energy is a leading provider of coal market information in China.

--Fenwei report,
--Edited by Haripriya Banerjee,

Similar stories appear in Coal Trader International See more information at