Traders Left on the Hook With Expensive Coal After China Restricts Prices

A worker walks past coal piles at a coal coking plant in Yuncheng, Shanxi Province, China, on Jan. 31, 2018. William Hong/Reuters

BEIJING/SINGAPORE—Chinese coal traders are selling at a loss or trying to delay imports after Beijing’s market interventions triggered a 50 percent price drop that saddled them with unprofitable supplies, according to several market participants.

Domestic thermal coal futures have halved over the past three weeks after the government ordered top mining companies to slash prices, set a target, and raise output immediately to curb prices that had nearly quadrupled this year.