Top Chinese Utilities Not in Favor of Ban on Low-grade Coal Imports

Reuters reported that the top five utilities in China have formally objected to a draft proposal from the National Energy Administration that bans the import of low-quality coal on the grounds that it will increase their costs and reduce demand for their coal.

As quoted in the market news:

‘We’ve lodged a formal protest with the National Development and Reform Commission. We can’t sit by and do nothing when we’ve been in the red for so long,’ said a source at a utility, who declined to be identified due to the sensitivity of the matter. The NEA comes under the NDRC, the country’s top economic planning agency.

Beijing is caught between supporting its miners as coal prices fall and curbing use of low-quality coal which causes pollution, and the concerns of utilities who already suffer from low state-set electricity prices for consumers.

Click here to read the full Reuters report.