Reuters manages ‘clean-up’ of illegal coal storage sites planned by Chinese state

Reuters. File photo: A coal-fired power plant is seen in Baotou City, in China’s Inner Mongolia Autonomous Region, October 31, 2010. REUTERS / David Gray

(Reuters) – China says it will conduct “clean-up and correction” work on coal storage sites in some coal-producing areas and ban storage sites without approval in its latest move to skyrocket coal prices.

The National Development and Reform Commission (NDRC) said in a statement late Tuesday that there are many unlicensed coal storage sites around the mines in Shaanxi, Shaanxi and Inner Mongolia’s main manufacturing areas, “making it more convenient for illegal traders to stockpile coal,” “By.

The price of thermal coal on the Zhengzhou Commodity Exchange has also risen by more than 100% this year, although prices have fallen by nearly 40% from record highs after the cooling system. It fell 10% to hit its daily trading limit on Wednesday morning.

In addition to stepping up investigations and strengthening oversight, the three sectors need to establish a reporting system for legal and loyal coal storage sites and ban them without approval, the NDRC said.

The statement said they should also crack down on illegal profiteering activities such as raising coal prices by stockpiling and using illegal coal storage sites.

China, the world’s largest coal producer and consumer, has been hit by supply shortages, which have led to the rationing of electricity for industry in many regions.

The country is pushing for coal miners to increase output and boost imports so that power plants can rebuild stocks before the winter heat season, but analysts say the deficit could continue for at least a few more months.

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