THE government has set a “reasonable” price range for the benchmark 5,500 kcal thermal coal at Qinghuangdao Port for medium- and long-term trading at 570-770 yuan (US$86.98-US$121.77) a ton, the country’s top economic planner said Thursday.

The move comes as the government strives to balance the profits of coal miners and power generators after electricity outages and runaway coal prices last year.

“The price range, only used as a guidance, is determined on the basis of full considerations of costs and profits in coal mining and power industries,” Zhou Banxue, an official from the National Development and Reform Commission (NDRC), said at a news conference.

As the logistics costs of delivering coal from mines to ports are relatively stable, the price guide at ports will also help limit prices at mines, the official said.

The NDRC said it will further improve the coal market pricing mechanism so that the coal prices will maintain within an appropriate range.

The economic planner will also closely monitor spot coal prices and will seriously investigate market speculation and illegal market practices such as fabricating information about prices.

“We will timely assess the price range based on coal production costs and the developments in energy industry,” Peng Shaozong, an official from the NDRC, said at the same news conference.

Chinese authorities also said they will prevent excessive hoarding of iron ore to keep its price stable, stabilize the industrial chain and ensure the market remains stable.

The government will come up with measures to shorten the free storage period for iron ore traders and boost costs of port-side inventories, according to a meeting held by the National Development and Reform Commission and the State Administration for Market Regulation on Wednesday.(SD-Agencies)