China's electricity and coal price index fell 6.18% year on year in September

On October 18, the website of the national development and Reform Commission released the national electricity and coal price index in September 2019. In September, the national electricity coal price index was 489.88 CNY/ton, up 0.63% month on month, down 6.18% year on year. In terms of provinces, Guangxi, Jiangxi and Hunan ranked the top three in the price index of electricity coal in September, which were 688.05 CNY/ton, 644.14 CNY/ton and 625.37 CNY/ton respectively, with a change of 2.06%, - 0.37%, - 0.42% on a month on month basis, down 5.07%, 6.85% and 6.84% on a year-on-year basis. In September, the power coal price index ranked the last three in Xinjiang, Mengxi and Mengdong, with 268.54 CNY/ton, 286.36 CNY/ton and 287.66 CNY/ton, respectively, rising 2.25%, 2.43% and 2.18% month on month, up 6.63%, 1.2% and 18.52% year on year. From the first three cases of the increase and decrease of the month on month, the price areas with the largest decrease of the price of electric coal are Hainan (- 3.61%), Chongqing (- 3.31%), Shaanxi (- 1.99%), Gansu (2.57%), Mengxi (2.43%) and Xinjiang (2.25%), respectively.

In terms of the first three cases of year-on-year increase and decrease, the price regions with the largest decrease in the price of electric coal are Hainan (- 16.59%), Henan (- 15.3%), Fujian (- 11.61%); the price regions with the largest increase in the price of electric coal are Mengdong (18.52%), Xinjiang (6.63%) and Mengxi (1.2%). Among the 31 provinces and cities (excluding Beijing) monitored, 16 regions, including Chongqing, Hainan and Shaanxi, saw price declines to varying degrees, with the downward provinces and cities holding the same level, with the range less than 19.52 CNY/ton; all the other 15 regions saw price rises, with the increase less than 13.92 CNY/ton. In terms of major coal producing areas, the prices of coal in Shanxi and Shaanxi have been reduced. In September, the coal price index in Shanxi Province was 349.13 CNY/ton, down 0.61% compared with August, down 5.95% year on year. Shaanxi coal price index in September was 396.55 CNY/ton, down 1.99% compared with August, down 5.16% year on year.

In September, the price of coal in East and West Mongolia increased. In September, the price of national power coal market rose steadily, while the market transaction continued to be depressed. Near the 70th anniversary of Daqing, the situation of coal mine safety and environmental protection inspection in the main production area is becoming increasingly severe, the coal pipe tickets and pyrotechnics are strictly limited, the overall coal supply is tight, while the surrounding users and intermediate traders are actively stocking up, the coal mine inventory is significantly reduced, supporting the stable rise of mine price. However, because the downstream power plants are in a state of high inventory and low daily consumption, and some power plants have started unit maintenance, the demand for coal is weak, and the fluctuation range of coal price at the transfer port is small. From the heavy burden of power enterprises to the long-term conflict of coal and electricity, both enterprises and the government are trying to find the "antidote" with the smallest "side effect".

Therefore, the "coal and electricity pool" which is highly expected has always been favored and encouraged. Recently, the national development and Reform Commission and the National Energy Administration issued the notice on increasing policy support to further promote coal power joint operation (fgnergy [2019] No. 1556), emphasizing the strategic significance of coal power joint operation, clarifying the development direction of coal power joint operation, and refining the realization form of coal power joint operation. It is pointed out in the document that the coal power joint venture shall be given priority to in the newly planned construction of coal mines and power plants, the coal power joint venture shall be accelerated in the transportation of coal mines and power plants according to local conditions and enterprise conditions, large power coal enterprises and thermal power enterprises shall be encouraged to accelerate the implementation of the coal power joint venture; the coal power plants and coal mines shall be supported to break through the boundaries of regions, industries and ownership, and be implemented through asset restructuring, equity trading, etc. Integration of coal and electricity, cross shareholding of coal and electricity. As a matter of fact, with the "top bull" phenomenon of coal and power industries located in the upstream and downstream of the industrial chain, the "coal power joint venture", which has been regarded as an important means to solve the contradiction between coal and power, has been repeatedly promoted by the government and relevant departments, especially the combination of Shenhua Group and Guodian group in 2017, which provides a typical case for a higher-level coal power joint venture.

However, from the guidance on the development of coal power joint venture in 2016 to the supplementary notice on further promoting coal power joint venture to promote industrial upgrading in 2018 to the notice on increasing policy support to further promote coal power joint venture, the "coal power joint venture" supported by the policies issued by the two ministries and commissions three times in four years has been struggling, and the actual implementation effect is even more. Much less than expected. At the same time, there are different opinions in the industry. How can coal power joint venture work? What are the hidden worries about coal power integration? There are many different opinions. Different people have different opinions. In fact, the two industries of coal and electricity are originally "interdependent, coexisting and indispensable". Instead of writing about "who eats who", it's better to look for a better fusion point between the two sides. Now, the issuance of the notice on increasing policy support to further promote coal power joint operation undoubtedly brings coal power closer and closer to integration, and the long-term contradiction of coal power will be resolved to a certain extent.