BEIJING Feb 20 China's top coal producers will
meet on Tuesday to discuss plans for stabilising output this
year, the official Shanghai Securities News reported.
The meeting organised by the China Coal Association will
assess current operations and explore further measures to ensure
stable output, the newspaper said in a report on its website on
Talk in the market that the government will reinstall daily
limits on coal mining output after the winter heating period
pushed up thermal coal futures last week.
Coke and coking coal futures rose on Monday after Beijing
suspended imports of North Korean coal as part of its efforts to
implement United Nations sanctions against the country.
The output cuts, introduced in April 2016, ordered mines to
limit the number of days they operate each year to 276 from 330
as part of Beijing's effort to cut inefficient surplus capacity.
But the limits were abandoned in November after a
double-digit percentage drop in output triggered a sharp rally
in prices ahead of the key winter heating season.
The report said that Shenhua Group, China National Coal
Group and others are backing renewed cuts to 276 working days
from 330, but that details on the implementation still needed to
be worked out by the government.
It added that targetted output cuts in 2017 are expected to
be lower than last year but more difficult to achieve.
(Reporting by Dominique Patton)