Most part of Northern China had another wave of strong cold air since the 21st of December, and the temperature had dropped significantly, hitting the lowest this winter. Affected by the strong cold air, coal consumption has been rising rapidly, especially in Harbin, Zhejiang, Beijing and other regions. The data show that major direct-supply power plants across China have seen continuous high coal consumption every day since December, exceeding 2.7 million tons for several days in a row. As of the 19th of December, the major direct-supply power plants have a coal inventory of 59.72 million tons, enough to last 21.5 days.

The latest average market price for Pan Bohai Rim steam coal of a calorific value of 5500 kcal closed at 634 yuan per ton, a fall of 1 yuan per ton from the previous reporting cycle. The analysts believe that given the continuous increase in domestic demand for electricity, the situation in domestic coal consumption has improved significantly. Coal inventories at major electricity companies have come down significantly, while the winter peak consumption in electricity and coal is continuing, the operational environment for the domestic steam coal market has improved. The major causes for the current decline in the market price of Pan Bohai Rim steam coal lie in the pressure from imports of steam coal, as well as the uncertainty in the price negotiation by coal producers and power plants on the 2013 medium to long term steam coal contracts, which had triggered sustained caution and pessimistic air in the market.

The National Development and Reform Commission has recently issued A NDRC Notice on Lifting Temporary Price Intervention Measures on Steam Coal and the General Office of the State Council Guidance on Deepening the Reform of the Thermal Coal Market, which will assert far-reaching impact in the near future, especially in the future domestic thermal coal market.> has most projects compared with other provinces and autonomous regions, accounting for a quarter of the total. Other provinces with large number of selected projects are concentrated in the Northeast and the Northwest of China. The main beneficiaries of the subsidies include Guodian, Huaneng, Datang, Huadian, each has 83, 58, 55, and 21 projects receiving the subsidies.