November 2 (Reuters) – Several coal producers in China’s Inner Mongolia region have cut thermal coal prices below 1,000 yuan ($156) a ton, the country’s National Development and Reform Commission (NDRC) said on Tuesday.

These price levels are well below the short-term price target of 1,200 yuan that exchange and energy sources said last week that the NDRC had set as it leads the Chinese government’s efforts. to lower coal prices and alleviate widespread power shortages.

Four producers – Yitai Group, Mengtai Group, Huineng Group and Xinglong Group – in Inner Mongolia, China’s second-largest coal-producing region, have “taken the lead” in lowering ex-pit prices of thermal coal by 5,500 kilocalories to less than 1,000 yuan, the NDRC said.

Thermal Coal Futures on the Zhengzhou Commodity Exchange CZCcv1 were trading up 0.5% at 902.80 yuan a ton as of 13:54 GMT in Tuesday’s overnight session, having more than halved from a record high of 1,982 yuan on Oct. 19 after the NDRC said it was exploring ways to intervene in coal prices.

“As the supply and demand situation continues to improve, coal prices are expected to accelerate their return to a reasonable level,” the NDRC said on Tuesday.

($1 = 6.3985 Chinese yuan renminbi)

(Reporting by Tom Daly; Editing by Kirsten Donovan)

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