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Sinolytics Radar

Slanting coal prices

Recent power shortages caused grave concerns among companies in China. The system of largely fixed power pricing seemed ill equipped to compensate for changes in coal consumption. But China’s National Development and Reform Commission illustrated once more that in acute cases it can very effectively intervene in the market. It employed a mix of market-oriented liberalization steps and strong direct state intervention to bring down coal prices within a week and stabilize the market, analyzed Sinolytics.

Von Redaktion Table