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BEIJING, February 24 (Reuters) – China has set a “reasonable” price range for benchmark thermal coal of 5,500 kcal at Qinghuangdao Port for medium and long-term trading at 570-770 yuan ($86.98-$121.77) a day. ton, the country’s state planner said Thursday.

The move comes as Beijing struggles to balance profits of coal miners and power generators after widespread blackouts and spiraling coal prices last year.

“The price range is determined based on comprehensive cost and profit considerations in the coal mining and power industries,” said Zhou Banxue, an official with the National Development and Reform Commission. (NDRC) at a press conference.

Since the logistics costs of delivering coal from mines to ports are relatively stable, the price guide at ports will also help to limit prices at mines, the official said.

Still, the price range is well below current Qinhuangdao coal spot price levels SH-QHA-TRMCOAL around 970 yuan per ton. The benchmark index has jumped 23% since the start of the year.

The NDRC will also closely monitor spot coal prices and seriously investigate market speculation and illegal market practices such as price information fabrication.

“We will assess the price range based on coal production costs and developments in the power industry in due course,” Peng Shaozong, an NDRC official, said at the same press conference.

($1 = 6.3234 Chinese yuan renminbi)

(Reporting by Muyu Xu and Dominique Patton; Editing by Kim Coghill)

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