Regulator urges coal producers and buyers to fill 80 percent of contracts per month

China's top economic regulator urged coal producers and buyers to fulfill at least 80 percent of the signed medium and long-term coal contracts each month.

The National Development and Reform Commission said in a statement on Wednesday the move is part of the country's larger drive to ensure stable supplies and prices of coal.

The NDRC said in its statement it has released a new notice to strengthen the supervision of 2022 medium and long-term coal contracts.

The notice said at least 90 percent of the signed contracts should be fulfilled on a quarterly or annual basis.

All of the medium and long-term coal contracts will be recorded at a national coal trading system online. The NDRC will take measures such as regulatory discussions and accountability to deal with enterprises that fail to meet the requirement.

Such contracts should be in line with the requirement mapped out by the document on further improving the market-oriented coal price formation mechanism, which set a reasonable range for coal prices.

The NDRC released the document last week in a move to guide coal prices to move within a reasonable range.

The document said the country has set a reasonable price range of 570-770 yuan per ton for medium and long-term trading of benchmark 5,500 kilocalorie thermal coal at Qinhuangdao Port.