Global coal prices might ease to some extent in the near future as production in China has started increasing in the wake of that government relaxing its cap on domestic production.
Following the recent decision of the Chinese government to allow domestic coal miners to raise production in view of the upswing in coal prices, the major coal producers in that country have started ramping up their output, as learnt. As a consequence, approximately 15 MnT of additional coal supply will be released every month hereafter that could impact positively in moderating the rising prices.
The Chinese government has recently approved coal miners to raise their production by 500,000 ton per day if coal prices cross the Yuan 500/MT mark.
Subsequent to the latest price rising to Yuan 537/MT in China, the major producers have started to raise their productions, as allowed by that government.
The Chinese government had earlier decided to cut down domestic coal production to match supply with demand. As part of the production trimming measure, the number of working days in coal mines was reduced to 276 days per year from 330 days in a year.
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