Coal power long-term cooperation has entered the peak period

The 2020 national coal trade fair, sponsored by China Coal Industry Association, opened yesterday in Rizhao, Shandong Province, and the signing of annual long-term contracts between coal enterprises and downstream industries also reached a peak. Liang Jiakun, President of China Coal Industry Association, said that we need to further consolidate the results 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 the 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. According to the reporter, in the past years, the overall fulfillment rate of coal power long-term cooperative contract was relatively good, especially when the supply was in short supply and the railway transportation capacity was in bottleneck, the power and supply guarantee effect of long-term cooperative was very obvious, which effectively guaranteed the coal safety of power enterprises. The notice on promoting the signing and performance of medium and long-term coal contracts in 2020 (hereinafter referred to as the notice) issued by the national development and Reform Commission recently requires that the number of medium and long-term contracts signed by the central government, provinces, cities and other large-scale coal and power generation enterprise groups should reach more than 75% of their own resources or purchasing volume, which is a reasonable increase compared with the level in 2019. It is encouraged to introduce Lead new coal mines to sign higher proportion of medium and long-term contracts.

According to the notice, the performance rate has increased by no less than 80% quarter on the benchmark of no less than 90% in the whole year, indicating that the development and Reform Commission has put forward higher requirements for the long-term agreement performance rate. " Yang Jie, a researcher at Yimei Research Institute, told Shanghai Securities News that under the background of promoting electricity market and reducing costs, the current operation of thermal power enterprises is generally difficult. In view of the signing of the long term agreement in 2020, the power plant should strive for more preferential policies for itself. It is also proposed in the notice that, in the process of performance, according to the actual situation, the annual supply and demand contract of transportation capacity confirmed by the railway department is indeed difficult to implement in daily life, and the transaction can be carried out with the consent of three parties after production and transportation. According to Yang Jie, this has left space for power enterprises to strive for market purchase volume under certain circumstances. In addition, the coal price situation in the next year is expected to partially reduce the operating pressure of thermal power enterprises. Liang Jiakun predicted 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. Zhang Feilong, President of Yimei Research Institute, told Shanghai stock exchange this year that the spot center of coal (5500 kcal power coal) is 595 CNY/ton and the price range is 550-650 CNY/ton. It is expected that the center will move down to 530-540 CNY/ton next year. The market coal price is expected to run between 500-580 CNY/ton. This means that in addition to the high-quality coal production capacity, there is still profit, and the whole industry's loss will expand. Accordingly, the loss area of thermal power industry will be reduced. The head of a large-scale power generation enterprise told Shanghai Securities News that due to the loose coal supply situation next year, the coal price rate will continue to decline. Judging from several contracts that have been concluded recently, the coal enterprises will speak better than before. In terms of price, it is expected that this year's benchmark price rate of coal long-term cooperation will remain at the level of 535 CNY/ton in 2019. However, in the process of contract fulfillment, the power plant is expected to strive for a higher proportion of annual long-term cooperation and reduce the proportion of bundled sales of coal enterprises.