China urges utilities to ink supply deals with coal firms asap

Coal power plants must secure enough supplies for winter.

Reuters reported that China’s state planner encouraged utilities to sign long-term purchase contracts with coal producers for next year as early as they can to secure enough supplies for this winter as coal power plants ramps up inventory for peak demand season.

The National Development and Reform Commission (NDRC) - in a statement on Monday citing an internal meeting - also repeated a pledge to secure supplies for power plants in six northern regions including Heilongjiang, Liaoning and Jilin provinces, and the industrial sector made up of capital Beijing, Tianjin port and Hebei province.

The NDRC statement came as rallying coal prices, increasing safety checks and robust imports spurred more concerns of tight winter supplies.

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