Regulator issues document to improve coal price formation

China's top economic regulator has released a new document to further improve the market- oriented coal price formation mechanism, in its latest move to ensure stable supplies and prices.

Under the new document, the National Development and Reform Commission said it will take key steps to guide coal prices to move within a reasonable range.

The NDRC said in a statement posted on its official website that improving the pricing mechanism will help stabilize market expectations, curb market speculation, avoid wild swings in coal prices, promote the coordinated and high-quality development of both upstream and downstream industries, and ensure stable energy costs for downstream enterprises.

"To further improve the mechanism, (the country) will not only give full play to the decisive role of the market in allocating resources but also give better play to the role of the government," it said. "Adhering to the principle that coal prices are formed by the market, (we will take measures to) guide prices to move within a reasonable range."

The new document said the country will take steps to improve the coal and electricity price transmission mechanism and improve the price control mechanism for coal.

More efforts will also be made to ensure reasonable and sufficient coal supplies, improve the medium and long-term coal contract system, strengthen management of market expectations, strengthen regulation of the futures and spot markets, and crack down on market violations.