China calls coal export halt to end power crisis
China told its miners and port authorities to stop coal exports for the next two months to help end its most severe power crisis yet.
By Agencies |
China told its miners and port authorities to stop coal exports for the next two months to help end its most severe power crisis yet, sending benchmark coal swap prices sharply above $100 a tonne.
Some traders had been bracing for a possible clamp-down by Beijing after regional electricity shortages built last week into a nationwide crisis, with some generators struggling to secure increasingly costly coal and others shutting down capacity to avoid producing cheap electricity at a loss.
"During the Chinese New Year and parliamentary meeting, all thermal coal exports will be suspended," the ministry of communication said.
"Where there is a need, all international shipping capacity will be diverted for domestic transportation requirements," it said.
Some traders had been bracing for a possible clamp-down by Beijing after regional electricity shortages built last week into a nationwide crisis, with some generators struggling to secure increasingly costly coal and others shutting down capacity to avoid producing cheap electricity at a loss.
"During the Chinese New Year and parliamentary meeting, all thermal coal exports will be suspended," the ministry of communication said.
"Where there is a need, all international shipping capacity will be diverted for domestic transportation requirements," it said.
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