Reuters reported 100 million tonnes was contracted, roughly 20% of the annual expected consumption of the power companies, but an industry official told the news service the utilities might contract a total of 200-300Mt for the year.

Yanzhou Coal Mining recently settled 7.84Mt of domestic thermal coal contracts at an average benchmark price of 502.62 yuan a tonne ($US73.55/t), a 4% increase from 2008.

Chinese power companies and coal producers have been at a standoff for most of this year over prices, leading to an increase in the spot trade and imports.