Wed, March 8, 2017 6:15 am
China’s National Development and Reform Commission (NDRC) announced yesterday that the Country will not reinforce previous output restrictions (276 days/yr) if prices remain within a “reasonable range” and it will be up to provincial governments and relevant agencies to decide whether to implement cutbacks at mines that are not considered “advanced”. The reasonable range was not given in the statement. The NDRC also said, “The relatively sufficient supply may help prices to stabilize this year and the price rally last year caused by the fast decline of production is unlikely to occur.” We’re anxious to see how the international markets will react to the news as many Chinese buyers remained on the sidelines awaiting additional details regarding output restrictions and for the announcement of the Apr – Jun benchmark price; however, recent import demand in China has been strong as buyers look toward the seaborne market for higher quality coals at competitive import prices. China was a net coking coal importer in January for the first time since Dec ’14.