SHANGHAI: China’s introduction of a new “reasonable” price range of CNY570-770 per tonne (t) for 5,500kcal/kg coal at Qinhuangdao (QHD) Port will benefit power generation companies (gencos) more than coal producers, Fitch Ratings said in a new report. Fitch in its report “China Guides Coal-Price Band Upwards” said the price band was introduced by the National Development and Reform Commission (NDRC) on 24 February 2022 and will be effective from 1 May. The range is set for long-term coal supply contracts. The NDRC also encouraged power gencos to purchase more coal via long-term contracts, which can help to reduce earnings volatility for both the coal and power sectors. TLTP
