ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Economy

Coal spot prices gyrate with every shift in Chinese policy

Beijing's nervousness over power prices makes life hard for Japanese utilities

The Chinese government has eased recent curbs on domestic coal production, such as at this mine in the country's central Shaanxi Province.

TOKYO -- Spot prices for coal used in power plants have fallen steeply, following a sharp upswing last autumn, after China eased restrictions on domestic coal production.

China's energy policy has come to set the trend for international coal prices, as the resource-hungry country greatly expands imports. But its policy shifts are notoriously unpredictable, creating a problem for Japanese electricity producers, which are gradually increasing their spot purchases of coal.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more