China's tight coal supply easing, prices stabilizing: NDRC

BEIJING, Nov. 1 (Xinhua) -- China has seen significant improvement in its coal supply as production has significantly expanded and prices have stabilized, according to the National Development and Reform Commission (NDRC).

Since mid-October, the country's average daily coal production has been above 11.5 million tonnes, with the highest figure in recent years reaching 11.72 million tonnes, the NDRC said.

The most-traded January thermal coal futures contract on the Zhengzhou Commodity Exchange continued to fall as the country took multiple measures to regulate excessive market speculation.

On Monday, the futures prices of thermal coal closed at 917.6 yuan (about 142.95 U.S. dollars), diving 53 percent from its high of 1,982 yuan on Oct. 19, data from the exchange shows.

As a tight coal supply eases, the fuel stocks of key coal-fired plants in the country are accelerating growth.

"In recent days, the daily coal supply to key coal-fired power plants has surpassed 8 million tonnes, with the highest figure topping 8.32 million tonnes, a historic high," the NDRC said.

China's top economic planner said it expects the coal inventory of the country's power plants to surpass 110 million tonnes, which could support 20 days of consumption.

Coal stocks at power plants in the northeastern provinces of Heilongjiang, Jilin and Liaoning have increased to exceed 12.7 million tonnes, nearly double the figure seen at the end of September, and could support 32 days of consumption, the NDRC said.