China Coal Association: the supply and demand of coal market

At the 2020 National Coal Trade Fair held on December 4, Liang Jiakun, Secretary of the Party committee and President of China Coal Industry Association, said that at present, the bottleneck problem of high-quality development of the coal industry is still prominent, the difficulty of coal emergency supply is increasing, there is downward pressure on the operation of the coal economy, and the synergy effect of system and mechanism innovation and supply side structural reform needs to be improved. Coal Enterprises The problem of heavy burden of taxes and fees is prominent, and the transformation and development of coal enterprises in old mining areas are facing many difficulties. In analyzing the trend of the coal market, Liang Jiakun pointed out that the growth rate of coal consumption has slowed down since this year. It is expected that the annual coal consumption will maintain a small growth, the coal output will maintain a steady growth, and the supply and demand of the national coal market has changed from an overall balance to a loose direction. However, it is worth noting that coal emergency supply security is more difficult.

On the one hand, the structural change of power supply and demand has increased the peak valley gap, and the largest peak valley gap in large and medium-sized cities accounts for nearly 50% of the maximum load. With the increasing proportion of clean energy power generation, coal power is more and more affected by seasonal extreme weather, and the pressure of peak regulation is increasing; on the other hand, the layout of coal industry and regional supply pattern continue to change, and coal production is further moving to Shanxi and Shaanxi In addition to the implementation of "public to railway", the specifications and layout of coal transfer out have changed greatly. The operation of coal economy also faces downward pressure. Liang Jiakun said that since this year, the release of coal production capacity is accelerating, the growth of consumption is slowing down, and the price of coal is stable. From January to September, the overall profits of Coal Enterprises above designated size decreased by 3.2%, and the cyclical growth momentum of coal economy was significantly weakened. In the next period, with the continuous release of new coal production capacity and the continuous improvement of new energy development level, the supply of coal market will further change to a loose direction.

At the same time, it is difficult to deal with the assets and debts of the closed and exited coal mines, to settle the personnel, to run the society by the enterprises, and to finance the enterprises. The problem of expensive financing is very prominent. It is more and more difficult to settle the personnel of the closed and exited coal mines. According to Liang Jiakun, the actual value-added tax burden of coal products is 10%, which is higher than the national average level. The profits of new and old mining machines in the enterprise are not balanced, but the income tax cannot be consolidated, which results in some enterprises paying income tax while losing money. For example, the coal resources are exhausted, the production capacity structure is single, the brain drain is serious, the policy support is not enough, the equipment funds are insufficient and other problems seriously restrict the transformation of old mining areas, especially the wage level of coal miners, which is lower than other industries, and one third of the old mining areas are still in the loss level. He stressed that to solve the above difficulties and problems, we need to further consolidate the achievements of structural reform on the supply side of coal, adhere to the pricing mechanism of "medium and long term contract system" and "basic price + floating price", strengthen research on coal market, organize production and operation in accordance with laws and regulations, strengthen industry self-discipline and honest operation, and ensure the long-term and stable operation of coal economy.