Long-term Stability of Coal Becomes The Focus
China’s top economic regulator said on Tuesday that a new mechanism aimed at keeping fossil fuel prices within a reasonable range China is studying a mechanism to stabilize current out-of-control coal prices in the long term.
The National Development and Reform Commission stated that it is studying reasonable costs, normal profits and market changes in the coal industry, and studying the pricing mechanism of base prices plus floating prices, which will help keep coal prices in a reasonable range for a long time. .
The National Development and Reform Commission stated in a report. It will work hard to ensure that the pricing mechanism is linked to the recently announced power market-based pricing mechanism. Severely crack down on behaviors that do not strictly implement the requirements of the market-based pricing mechanism. Make a statement on its official WeChat account.
The National Development and Reform Commission
It will intensify supervision, promote the return of the market to rational operation. Furthermore, promote the sustainable and healthy development of the coal and power industries.
A new report issued by the China Coal Industry Association stated that China’s consumption has grown rapidly in the first three quarters due to various factors. Such as the impact of the novel coronavirus pneumonia (COVID-19) and strong seasonal demand.
According to the report, with the efforts of the coal industry to stabilize supply and price. China’s coal supply has shown signs of recovery.
The energy group China National Energy Corporation (also known as CHN Energy) stated that the company will make every effort to ensure. The country’s coal supply is sufficient, and all its mines have been fully operational.
The company reported that coal production in the first nine months of this year was 410 million tons, a year-on-year increase of nearly 5%. China Energy News spokesperson Wang Jingang said that its sales increased by more than 9% year-on-year. Thermal power generation exceeded 690 billion kilowatt-hours, an increase of nearly 18% year-on-year.
From January to September, the company provided 437 million tons through a long-term agreement.
It said that the company’s coal mines are also stepping up its production. This is in response to the National Development and Reform Commission’s announcement earlier this month. It urged the country’s mines to increase production and increase production.
In the past week, the National Development and Reform Commission announced a series of measures. Including combating market hoarding and collusion, to increase coal supply and curb price increases.
Tao Jin, deputy director of the Macroeconomic Research Center of the Suning Institute of Financial Research. The government’s recent measures to curb price increases will help cool the hot market and bring record high prices back to a reasonable range.
“The government’s measures to increase production under power shortages and crack down on illegal activities. Such as price hikes will help boost market expectations and stabilize prices in the short term.”
China Everbright Bank analyst Zhou Maohua said that with the help of the government’s strong measures to stabilize supply and price. The country’s energy shortage will gradually ease, and the current high coal price will drop to a “normal level” as soon as possible. Later.
According to data from the National Development and Reform Commission. The recent average daily coal output has increased by more than 1.2 million tons compared with September.
Since October 5, the coal supply of major power plants across the country has exceeded consumption for 20 consecutive days.
On Sunday, coal inventories in major power plants across the country reached 95.69 million tons. An increase of 17 million tons from the end of September, enough to meet 17-day consumption demand.
Looking ahead, the China Coal Industry Association stated that coal supply will continue to increase in winter and spring, and prices will gradually return to a reasonable range.