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China national coal association proposes import, production controls

28th February 2025

By: Reuters

  

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China's national coal association on Friday issued a statement to members proposing controls on coal production and imports of low-calorie, low-quality coal amid weak demand and high inventories.

The association said the proposal was in response to lower-than-expected growth in coal demand from downstream companies and rising pressure from strong supply and weak demand, which have hit coal prices.

Coal enterprises should actively adjust production rhythm, ensure safe production in coal mines and stabilize and control production to prevent a serious oversupply in the market, it said.

It also urged companies to effectively control the import and use of low-calorie and low-quality coal. It also called on companies to improve the level of clean coal production and be strict with medium and long-term contracts for thermal coal.

Edited by Reuters

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