(Bloomberg) — China is considering setting new limits on movements in coal prices that could help ease the nation’s energy crisis, though would threaten to curb profits in the sector.

The top economic planning agency is studying plans for a “price formation mechanism to guide the long-term stability of coal prices in a reasonable range,” the National Development and Reform Commission said Tuesday in a statement. Already, officials are working to establish a benchmark rate and estimate average production costs.

As China experienced power shortages, prices of futures and physical coal cargoes soared since the beginning of October. This has impacted important industries and could impede growth. The authorities’ actions to reduce those gains and support miners to increase their supply have resulted in futures falling by approximately a third over the last week.

More: China Tears Up a Rule Book In Race To Fix Its Energy Crisis

At 10.02 AM local time on Tuesday, the most-active thermal coal contract traded on Zhengzhou Commodity Exchange dropped 7.6% to 1,207 yuan ($189/ton), which is the lowest intraday prices in nearly a month. 

With inventory levels remaining low and peak winter demand near, prices may remain high throughout the remainder of the year. Prices will then begin to correct in the first quarter 2022. Morgan Stanley (NYSE:), analysts, including Sara Chan, said Monday.  

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