China’s top planning body has relaxed working day restrictions on its coal mines after reduced output boosted prices, frustrating central planners’ desire to control both price and supply of the nation’s most important energy source.
China’s National Development and Reform Commission said on Thursday that all mines could produce for 330 days each year, after last week extending a production band of 276-330 days through the end of March. Mines had been regulated on how many days they could operate, within the band.
The relaxation came after output statistics for October showed Chinese coal production had dropped 11 per cent in the first 10 months of 2016 versus the same period the year before. On a daily basis, output in October was down 1.5 per cent from September.