A coal mine in Xiaoyi City, Shanxi Province Photo: VCG

China's National Development and Reform Commission (NDRC)'s pricing department has reportedly convened meetings with major coal enterprises recently to brief them on steam coal's price restriction regulations, as government authorities continued actions to stabilize coal price following the recent power crunch. 

According to media reports, the authorities intend to regulate steam coal's pithead price and terminal sales price by adopting a "base price plus fluctuation range" mechanism. 

The base price of pithead steam coal is 440 yuan ($68.7) per ton (tax included), which is set by the NDRC. The price can fluctuate up by 20 percent with an upper limit of 528 yuan per ton. Local provincial governments can also decide how they regulate the steam coal's terminal sales price. 

On Wednesday, the NDRC also invited economic and legal experts to study how to formulate judgment criteria on coal enterprises' price gouging and profit seeking, as it was studying a mechanism to stabilize coal prices over the long run, the NDRC disclosed. 

China's top economic planner is acting to curb unruly coal price fluctuation, after recent coal price spikes heaped pressure on power companies and made them reluctant to generate power.

The efforts also came amid China's rollout of several documents on meeting carbon reduction goals, as the country strives to strike a balance between green transition and guaranteeing economic growth. 

China Railway's Shanghai branch hasbeen paying close attention to coal production, transportation and demands, according to a statement the company sent to the Global Times. From October 1 to Monday, the company has delivered 4.92 million tons of coal, up 6.2 percent on a yearly basis, the statement revealed. 

Global Times