China Coal Market Annual Conference and Global Maritime Coal Market Summit held

On April 10, 2019, at 14:00 p.m., the "China Coal Market Annual Conference and Global Maritime Coal Market Summit" opened at Jinjiang Hotel, Hongqiao, Shanghai.

The conference was co-sponsored by China Coal Market Network (CCTD) and Shanghai Steel Union Electronic Commerce Co., Ltd. (Mysteel). It received strong support from Dalian Commodity Exchange and Zhengzhou Commodity Exchange, and received special sponsorship from Deutsche Futures, Huatai Futures and Qinshan Coal Group.

Yang Xianfeng, Director of Economic Operation Department of China Coal Industry Association and Chairman of China Coal Transport and Marketing Association, and Zhu Junhong, Chairman of Shanghai Steel Union Electronic Commerce Co., Ltd., attended the meeting and delivered a keynote speech. The meeting was chaired by Feng Yu, vice chairman of China Coal Transport and Marketing Association and President of China Coal Market Network.

Yang Xianfeng, Director of Economic Operation Department of China Coal Industry Association and Director of China Coal Transport and Marketing Association, expressed many opinions on the topic of this meeting. He believed that the next step should be to continue to improve the coal supply system on the one hand, and on the other hand, to continue to do a good job in the signing, execution and performance of medium and long-term coal contracts, so as to maintain the stability of coal prices. At the same time, we should further increase and strengthen the clean utilization and efficient utilization of coal.

Yang Xianfeng pointed out that the external dependence of oil and gas is relatively high from the perspective of China's energy structure. From the perspective of national energy security and overall economic security, we should rely on coal to do a good job in energy supply. On the other hand, we are a big manufacturing country, with 3.5 million employees in the coal industry. At the same time, coal is transported from the production of coal, including nearly 50% of railway transport capacity, including coal ports, port cities, including downstream thermal power plants, power plants, steel plants, cement plants, coal industry chain, which has a large proportion of GDP, which also affects. It is also an important issue for us to realize the "Beautiful China Dream" to deal with the employment level and social stability of our country, and to do a good job in all aspects of coal. So we can't simply do it, for example, the "de-coalification" problem raised by some voices needs to be looked at comprehensively. In his speech, Zhu Junhong, chairman of Shanghai Steel Union Electronic Commerce Co., Ltd., said that in the past two years, it was the year for the coal-coke steel industry chain to break down its capacity. The promotion of various measures to reduce its capacity effectively promoted the healthy development of the coal-coke steel and electricity industry. The profit level of the coal-coke and coke industries also returned to the normal level, and the coal-coke steel industry was running well in coordination. He stressed that every harvest and growth of Shanghai Steel Federation can not be separated from the support and help of the leaders and guests present, and it is the driving force and source of Shanghai Steel Federation's continuous progress. Finally, he thanked all those present once again and congratulated the Conference on its success.

Around the theme of "Macroeconomic and Coal Industry Development Trend", Li Xin, Vice-Director of Economic Operation Department of China Coal Industry Association, delivered a speech entitled "Analysis and Prospect of China Coal Market in 2019". He said that the current coal market supply and demand balance uncertainties increase, industry development imbalance is not sufficient, coal production capacity is still facing difficulties, these three aspects need to be highly valued. In the near future, according to the forecast of relevant departments, at present, the growth of hydropower is likely to accelerate, the demand for coal and electricity is accelerated, and the national coal consumption is reduced due to seasonal factors. At the same time, the stock of the whole society, especially the main users and circulation links, remains high, or there may still be a downward pressure on prices. In the latter stage, we should deal with it from three aspects: first, we suggest that enterprises should adhere to the structural reform of coal supply side and work hard on the eight-character policy in accordance with the Party Central Committee's deployment. Second, accurately grasp the market trend and promote high-quality dynamic balance of the coal market. Third, accelerate structural adjustment and transformation and upgrading. Finally, he predicted that in 2019, the national coal market will continue to maintain overall stability. In his speech, Ye Chun, deputy director of the Ministry of Industry Development and Environment and Resources of China Telecom Union, expressed two concepts with a number: electricity, which accounts for 53% of the annual consumption of coal, and coal and electricity, which accounts for 53% of the total installed capacity. He believes that the change of the electricity market will inevitably affect the coal market, and the change of the coal market will also cause some disturbances and oscillations, even some changes, because of the introduction of the electricity reform policy, so the power reform is a spiral upward channel. Ye Chun also mentioned that, in addition to the pricing mechanism, the reform of the power industry is 10 years later than that of the coal industry, which needs to be solved in the medium and long term. Ye Chun also said that the location of coal-fired power should be adjusted because of the decline in electricity generation and price. In the past, many coal-fired power enterprises were making money by electricity, but now they should be changed, depending on some functions of electricity. One is flexible power supply, the other is regulative power supply, and the third is basic power supply. In the future, even if new energy develops rapidly, coal-fired power will remain the main force for quite a long time. Finally, Ye Chun emphasized that energy upgrading is an unavoidable task for every industry and enterprise. He called on all industries to build and negotiate together so as to achieve long-term development. Li Hua, a researcher at the China Railway Economic Planning Research Institute, also delivered a brilliant speech afterwards. Regarding the development trend in 2019-2020, he mentioned that the growth in 2020 will focus on the West-to-East coal transportation and Rail-sea intermodal transportation compared with 2017. The Mongolia-Hebei Line grew 180 million tons, the Wadi Line increased 180 million tons, the Monthly Line increased 60 million tons and the Handan-Handan-Jilin Line increased 50 million tons.