China Orders Power Firms to Replenish Coal as Prices Remain High
- Power firms asked to buy enough coal for 15-day inventory
- Major ports affected by Covid, adding transport constraints
A coal stockpile site in Taicang, Jiangsu Province, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China ordered power companies to immediately replenish their coal stockpiles, in a move that will put more pressure on firms already facing import restraints and high prices for the fuel.
The National Development and Reform Commission, the country’s top economic planner, asked power generators to sign long-term supply contracts with domestic miners and build stockpiles to last at least 15 days, according to people with knowledge of the matter. The move was effective from Friday, when the commission summoned major coal and power suppliers for a close-door meeting, the people said.