Black gold capacity cuts will not destabilize market

China will attempt to keep the coal market stable while continuing to shed capacity this year, according to the National Development and Reform Commission.

There are five measures the country will take to bring this about: flexible work days, replacing the existing outdated capacity with highly efficient capacity, maximum and minimum stock, mid and long-term contract and price management mechanism.

Capacity reduction remains high on the agenda though the goal in 2016 - reduction of 250 million metric tons - was reached before the end of the year. The national plan for the coal industry for 2016-20 stipulates that approximately 800 million tons of capacity must be trimmed every year.