"It is rare  for  Shanxi  to hold its local coal sales conference before the national  one,  which  is  normally  held  in  December,  when  coal producers  and  buyers  from  all  over  the  country  meet to negotiate business  contracts,"  said  Zhang  Shun,  a  coal  analyst  with  BohaiSecurities.  "It  shows that Shanxi's coal producers are anxious to sign sales contracts as soon as possible."Shanxi,  one  of  China's  largest  coal  producing  regions,  held  its conference  on Nov. 12 and Nov. 13 in Taiyuan City. The conference helps shape coal prices for the upcoming year.

Zhang said  that  producers  are hoping to sell as much coal as possible while peak winter demand supports domestic prices.

"After this  winter,  coal  prices  might drop substantially as economic growth winds downs in China," he said.

China's  coal stockpiles have been growing since the middle of September due to shrinking  demand.  Meanwhile,  domestic coal prices have fallen, though not as much as those on the international market.

Earlier  this month, the China National Coal Association warned domestic coal producers  to  restrict  output and avoid price wars in light of an oversupplied market.