Update with details, background
BEIJING, Dec 2 (Reuters) – China’s state planner said on Thursday it would guarantee supplies of key energy feedstocks for fertiliser companies, urging coal and natural gas enterprises to fulfil contracts signed with producers of the crop nutrient.
The National Development and Reform Commission (NDRC) said in another statement earlier on Thursday it had established working groups with local governments to ensure the stability of fertiliser production and supply for spring planting.
Major fertiliser producing provinces had lowered urea output earlier this year due to environmental regulations to curb emissions, analysts said, and that companies’ profit margins had been squeezed with the surge in coal prices.
Urea futures prices CURcv1 in China hit records this year, fuelled by high coal and gas prices and as a crackdown on energy intensive projects tightened local supplies.
That led China to implement additional inspection requirements for exports of fertiliser products, viewed by the market as an effective ban to cool prices and ensure sufficient domestic stockpiles.
(Reporting by Emily Chow and Beijing newsroom; Editing by Jacqueline Wong)
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