BEIJING Oct 13 China's state planner on
Thursday dismissed the months-long rally in coal prices as
unsustainable, saying output from local mines would further
replenish the country's stockpiles.
Beijing has "confidence" it can keep coal supplies stable,
Zhao Chenxin, spokesman for the National Development and Reform
Commission, said in a news briefing on Thursday.
"The current soaring coal price has no market foundation and
is not sustainable," he said.
His comments comes as coal's meteoric rally shows few signs
of ending even after the NDRC allowed some major mines to ramp
up output last month, partially reversing efforts to close mines
and curb pollution and overcapacity.
In the long term, demand for coal will drop as China shifts
towards cleaner energy, Zhao said. Stocks at major plants have
increased by 18 percent since August to just under 60 million
tonnes on Oct. 10, he said.
Australian thermal coal export prices have staged one of
their biggest rallies on record due to government-enforced mine
closures, pushing benchmark Newcastle cargo prices
up by 85 percent this year to $90 per tonne,
their highest since April 2013.
(Reporting by Beijing newsroom; Writing by Josephine Mason;
Editing by Joseph Radford)