SHARES of Chinese coal companies were weaker yesterday after the government said it would intervene to boost coal supply and cool prices in the wake of shortages that have forced blackouts in parts of the country.

The National Development and Reform Commission said on its website late Tuesday that it would help energy producers raise output and shore up domestic supply, as well as “guide coal prices back to a reasonable level” and clamp down on speculative activity.

It said it would focus on investigating “abnormal transactions,” referring to market actors potentially hoarding resources to drive prices up.

Coking coal and coke futures opened down 9 percent yesterday to hit daily trading limits. Thermal coal futures on the Zhengzhou Commodity Exchange and coking coal and coke on the Dalian Commodity Exchange plunged in night trading Tuesday.

China’s thermal coal prices have surged over 200 percent this year to record highs.

The most actively traded coking coal prices, for January delivery, stood at 3,442 yuan (US$538.58) per ton after touching the daily down limit. Coke prices fell to 4,039 yuan a ton. Prices of coking coal and coke have tumbled 89 percent and 70 percent, respectively, since end-June.

Shanghai-listed shares of Yanzhou Coal Mining dropped 10 percent, China Coal Energy Co. also lost 10 percent and China Shenhua Energy fell 6.35 percent on concerns that lower coal prices could weigh on revenues. (SD-Agencies)