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    Home > Chemial News > Valuable News > Coal market calls for mutual benefit and win-win situation

    Coal market calls for mutual benefit and win-win situation

    Echemi 2019-12-06


    On November 26, 11 large-scale coal production groups focusing on power coal, including the state energy investment group, China Coal Energy Group, Datong Coal Mine Group, Yankuang Group, Inner Mongolia Yitai group, Shaanxi coal chemical industry group, Huaihe energy group, Jinneng group, Yangquan coal industry group, Lu'an Mining Group and Jincheng Anthracite mining group, discussed power coal production, supply and Price and other issues of common concern to the community made commitments and launched initiatives. When the peak of winter coal consumption is coming and the power coal market is restless; when the recent domestic coal mine safety production accidents occur frequently and the power coal supply capacity is worried; when the supply-demand relationship of the domestic power coal market in the early stage is improving and the price of spot power coal is sliding; when the purchase and sale of power coal and the price negotiation have started and entered the countdown in 2020, the initiative The publication of the book is at the right time.

    First, the proposal states that coal enterprises have the ability to guarantee the domestic power coal supply. According to statistics, the raw coal output of the above 11 large-scale coal production enterprises in 2018 was ranked among the top 16 in China. The total raw coal output of that year reached 1.62 billion tons, accounting for 44% of the national raw coal output of that year, and the proportion of the national power coal output will be more than 50%. Moreover, the above 11 large-scale coal production enterprises are mainly located in the core areas of coal production and supply in China, such as Shanxi, Shaanxi and Mongolia Li coal has a strong external supply capacity and a wide range. Under the background of the continuous expansion of the railway coal export transportation channel and the continuous improvement of transportation capacity in the "three West Region" and the easing of the coal transportation capacity in the northern port, the domestic coal production enterprises with the above 11 large coal production enterprises as the core are fully capable of ensuring the supply of domestic power coal market.

    Second, the proposal bears a responsibility -- coal enterprises respond to the national policies and measures to stabilize the power coal market. A reasonable price level of power coal is the basis for stabilizing coal production and supply, and further promoting the stable operation of the economy. For this reason, the competent government departments have formulated or adopted a number of systems and measures to improve the capacity reduction and replacement, peak shaving and emergency capacity reserve, the pricing mechanism of medium and long-term contracts and "base price + floating price", the minimum and maximum inventory, the suppression of abnormal price fluctuations and enterprise credit evaluation. Since this year, the price of power coal in various purchase and sale modes in northern ports has shown a downward trend, and the price fluctuation range has been significantly narrowed. At present, the price of power coal, including spot coal, has fully entered the "green range", and the domestic power coal market has shown a sound development state. The proposal not only fully affirmed the effectiveness of the above systems or measures, but also proposed that all parties in the power coal market, including coal enterprises, should adhere to them.

    Third, the proposal demonstrates the adherence to the signing and performance of medium and long-term contracts. As Zhang Hong, Secretary of Discipline Inspection Committee of China Coal Industry Association, said, "the medium and long-term contract system and the pricing mechanism of base price + floating price established in 2017 have become the ballast and stabilizer for the stable operation of the coal industry", which is also the basis for ensuring the effective supply of power coal, ensuring the interests of downstream industries and promoting the reasonable return of power coal price in the past three years. The contents of the proposal show that coal enterprises are not only advocates of "integrity, contract abiding and common development", but also practitioners of this initiative. For the medium and long-term coal sales contracts fully recognized by upstream and downstream industries or enterprises in the past two years, large coal enterprises promise and call on all coal enterprises to adhere to the principle of good faith management, fulfill social responsibilities and strictly perform the signed ones We have signed a three-year medium and long-term coal sales contract and further improved the medium and long-term contract fulfillment rate.

    We also promise to continue to adhere to the medium and long-term contract pricing mechanism of "base price + floating price" and maintain the conditions of mutual benefit and win-win for upstream and downstream industries, so as to lay a solid foundation for building a harmonious and win-win community of destiny for upstream and downstream coal enterprises. Fourth, the proposal expresses the hope that coal enterprises must adhere to the law and regulations to organize production. Since this year, especially since October, coal mine safety accidents have occurred frequently, and the coal industry has made great sacrifices to ensure the domestic coal supply. Under the background that the supply-demand relationship of domestic power coal market tends to be balanced and the price of power coal tends to be stable in the near future, and under the inspection and supervision of governments at all levels and their competent departments, it is necessary for coal production enterprises to deeply inspect the safety production management issues, adhere to the organization of production in accordance with laws and regulations, and resolutely ensure that they do not violate laws and regulations, exceed capacity production and do not produce safely.

    In order to continuously improve the safety production capacity, ensure the stability of production and supply, reduce the impact of illegal production on the power coal market, at the same time, avoid the power coal supply and demand to the buyer's market deviation, and effectively protect the supply side reform results of the coal industry. Fifth, the proposal shows an attitude that coal enterprises are willing to increase the number of medium and long-term power coal contracts. Although the price of power coal in the past three years is a rational recovery after oversold; although the operating pressure of the downstream industry is not only from the price of power coal, for example, the pressure of thermal power enterprises mainly comes from the serious decline in the utilization hours of equipment. Although the realization and pricing mechanism of medium and long-term power coal purchase and sale contracts effectively reduce the power coal purchase cost of power generation enterprises in the past three years by reducing the interests of coal enterprises, the above 11 large-scale coal producers.

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