NDRC suggests adjusting power coal prices

China is expected to further deepen the reform to form a standardized and operational mechanism of power-coal pegging prices, according to the National Development and Reform Commission (NDRC).

NDRC said in a report that the present mechanism of the prices for coal used to generate electricity is not perfect, and major contractual prices for power coal are obviously lower than the market prices. The process of power coal market has developed slowly in some places.

In view of China's coal import and export in the first half of this year, China has become a net coal importer, restricted by railway transport facilities.

China exported 23.12 million tons of coal in the first half of this year, down 27.9 percent from that in the same 2006 period, and imported 27.07 million tons of coal, up 47.6 percent.

According to the report, the annual coal supply and demand maintains balance on the whole.

The report noted that China published a series of policies to increase safety, technical equipment level, resources cost and environment cost of coal collieries in recent years. And some more policies are under consideration and will be unveiled later.

It said that it is necessary to implement these policies to keep sustainable development of coal industry, but the concentrative implementation of these policies will seriously affect the operation of coal enterprises.