(Yicai Global) April 24 -- China’s coal industry has decided to implement a phased production reduction to maintain a balance between supply and demand against the backdrop of a serious oversupply, according to a notice the Beijing-based trade group China National Coal Association released today.

As the country’s Covid-19 epidemic comes under control, coal mines have still been churning out the carbon fuel and supplies have thus stayed at a normal level, while downstream industry enterprises are still resuming production. An obvious glut in the domestic market is present in the short term and coal prices have plunged in response, per the notice.

The benchmark spot price index of coal in has fallen in the Chinese market by about 15 percent to CNY486 per ton in the past two months to a four-year nadir.

Editor: Ben Armour