BEIJING, Oct 13 (Reuters) - 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