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China coal firms to discuss moves to stabilize output on Tuesday: media
February 20, 2017 / 2:37 AM / 9 months ago

China coal firms to discuss moves to stabilize output on Tuesday: media

BEIJING (Reuters) - China’s top coal producers will meet on Tuesday to discuss plans for stabilizing output this year, the official Shanghai Securities News reported.

Labourers search for usable coal at a cinder dump site in Changzhi, Shanxi province June 18, 2009. REUTERS/Stringer

The meeting organized 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 Monday.

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 targeted output cuts in 2017 are expected to be lower than last year but more difficult to achieve.

Reporting by Dominique Patton

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