Just wondering if as a tutor you agree or disagree with this: Controlling prices heavily affects an economy. It has a direct relationship with the supply and demand of goods. Price ceiling and price floor are two of the ways a government can limit a price. A price ceiling is when there is a maximum and a price floor is a minimum. In the article, I have found it was an example of price ceiling which means the demand will exceed the supply since the price will be lower than usual. According to S&P Global, China has reduced the price of domestic metallurgical coal, “A metallurgical coal producer in China was told by the NDRC to reduce prices of all grades of coking below Yuan 3,500/mt ($542.mt)” (Lalor 2021). This is one of the most expensive coal as the others were not affected due to them already being under the price, “The price cap would represent a cut of about Yuan 235/mt for Shanxi premium low-vol hard cooking coal” (Lalor 2021). Metallurgical coal is used to produce coal and is one of the most used building materials. Countries for example Australia and Mongolia will be affected as Australia has one of the highest prices in coal but was banned from trading with China. On the other hand, Mongolia did trade with Chine but according to the article “Mongolia has the second-largest source of imports – has seen its trade-flow stifled by COVID-19-related border closures” (Lalor 2021). Which resulted in China's coal production dropping. Another group it could possibly have an impact on is the seaborne market, It will create competition as the trading limit could be changed from 11% to 15%. I believe this is a good move for the economy as they need to move as much coal as possible to help the coal production and to be able to use coal effectively.
Just wondering if as a tutor you agree or disagree with this:
Controlling prices heavily affects an economy. It has a direct relationship with the
According to S&P Global, China has reduced the price of domestic metallurgical coal, “A metallurgical coal producer in China was told by the NDRC to reduce prices of all grades of coking below Yuan 3,500/mt ($542.mt)” (Lalor 2021). This is one of the most expensive coal as the others were not affected due to them already being under the price, “The price cap would represent a cut of about Yuan 235/mt for Shanxi premium low-vol hard cooking coal” (Lalor 2021). Metallurgical coal is used to produce coal and is one of the most used building materials.
Countries for example Australia and Mongolia will be affected as Australia has one of the highest prices in coal but was banned from trading with China. On the other hand, Mongolia did trade with Chine but according to the article “Mongolia has the second-largest source of imports – has seen its trade-flow stifled by COVID-19-related border closures” (Lalor 2021). Which resulted in China's coal production dropping. Another group it could possibly have an impact on is the seaborne market, It will create competition as the trading limit could be changed from 11% to 15%. I believe this is a good move for the economy as they need to move as much coal as possible to help the coal production and to be able to use coal effectively.
Thanks in advance for your time :)
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