Chinese look to long term contracts

IN a move away from the spot market and short term contacts, China’s largest independent electricity producer Huaneng Power International said it would look to secure long term coal contracts.
Chinese look to long term contracts Chinese look to long term contracts Chinese look to long term contracts Chinese look to long term contracts Chinese look to long term contracts

Shanghai skyline during daylight.

Angie Tomlinson

Reuters News reported Huaneng aimed to secure more than half of its coal supplies through long term market based contracts.

Until recently, Chinese power producers typically bought coal on the spot market and through one year contracts under State set terms.

However, soaring spot prices coupled with high domestic electricity demand has led electricity producers to reassess supply logic.

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