During the peak summer, the thermal coal volume is guaranteed, the price is stable, and the coal production capacity is increased and accelerated.
Experts believe that the domestic coal supply and demand relationship tends to be balanced on the whole, ensuring the demand for coal and electricity for production.
Guaranteeing coal supply is related to stabilizing the economic market. Recently, local development and reform departments have carried out pull-net-type investigations to investigate and punish coal prices exceeding a reasonable range in accordance with the law; at the same time, meetings have been held in many places to deploy thermal coal volume and price stabilization.
A few days ago, the National Development and Reform Commission announced that local development and reform departments, together with market supervision and other departments, have recently formed an investigation team to conduct a comprehensive investigation of the implementation of coal price regulation and supervision policies. According to some survey results recently reported, it has been verified that the coal sales price of some enterprises exceeds the reasonable range. In the next step, the development and reform department will continue to focus on the implementation of the coal price policy with relevant parties, and if the price exceeds the reasonable range, we will effectively find out, conduct interviews together, and investigate and punish them together.
In order to ensure energy supply and price stability, on June 20, Hebei Province held a teleconference on energy supply during peak summer, stating that it would stabilize the electricity supply in the province, prepare enough coal, gas, fuel oil, etc. in advance, and make arrangements in full. Priority power generation plan for peak summer, good coordination of “production, transportation, storage and demand”, strengthen supervision over the performance of medium and long-term coal contracts, and ensure that the price of thermal coal medium and long-term contracts is in place; Jiangxi Province recently proposed to vigorously strive for power support from outside the province. Conscientiously do a good job in supplying electricity and coal and ensuring transportation, dig deep into the potential of electricity supply in the province, and strengthen power supply through multi-wheel drive.
Song Xiangqing, deputy dean of the Institute of Government Management of Beijing Normal University and director of the Industrial Economics Research Center, told the “Securities Daily” reporter that due to multiple factors such as coal production capacity, policies, price formation mechanisms, and changes in social inventory cycles, the current overall domestic coal supply and demand relationship It tends to be balanced, and the growth rate of coal supply is far greater than that of demand, which ensures the demand for coal and electricity for production.
“The demand for electricity often determines the trajectory of the overall price of coal. During the peak period of electricity consumption in summer, it is easy to cause tight coal supply, and the relationship between supply and demand may be temporarily out of balance, and there will also be short-term upward risks in coal prices.” Song Xiangqing believes that in the current summer, the use of During the peak period of electricity, large power users should implement off-peak power consumption, thereby reducing the total power consumption, optimizing the power consumption structure, and maintaining the balance of coal and power supply.
Xie Logistics, senior investment consultant of Jufeng Investment Consultants, told the “Securities Daily” reporter that multiple measures should be taken to ensure the quantity and price of electricity and coal to ensure the smooth use of industrial and residential electricity, and to avoid high coal prices or because of Insufficient supply leads to tight electricity consumption, which affects the production of enterprises and drags down economic growth.
Accelerating the nuclear increase of production capacity is one of the starting points for maintaining the quantity and price of thermal coal. On June 18, the Shaanxi Provincial Development and Reform Commission held a symposium on the analysis of the economic situation of the province’s development and reform system in the first half of the year, and required that the production and operation of the energy industry be stabilized, and the implementation of projects such as coal production capacity increase and new energy bases should be increased. The reporter noticed that in recent days, the nuclear increase in coal production capacity has accelerated. For example, the Dongping Coal Mine Project in the Junger Mining Area of Inner Mongolia was approved for construction with an approved construction scale of 4 million tons per year; the production capacity of the Suancigou Coal Mine of Inner Mongolia Yitai Jingyue Suancigou Mining Co., Ltd. was increased from 18 million tons per year to 20 million tons/year; the production capacity of Zhongrun Coal will be increased from 8 million tons/year to 12 million tons/year.
Zhao Ling, senior investment consultant of Jufeng Investment Consulting, told the “Securities Daily” reporter that rising coal prices will bring cost pressures to downstream power companies and steel companies. Promoting the implementation of new production capacity can ensure the supply of coal, thereby increasing the profits of coal enterprises.
Recently, a number of listed coal companies released operating data for May. Among them, China Shenhua’s commercial coal output was 25 million tons, a year-on-year increase of 3.7%; China Coal Energy’s commercial coal output was 9.55 million tons, a year-on-year decrease of 5.4%; Shaanxi Coal’s coal output was 12.4929 million tons, a year-on-year increase of 4.59%.
“Under the combined effect of policies and the market, both supply and demand in the domestic coal market are booming.” Song Xiangqing said that sufficient coal supply not only ensures the demand for coal of listed companies such as electricity, but also increases the profit margins of listed coal companies.
Zhao Ling said that the profitability of listed coal companies will remain relatively high, and the release of performance is closely related to the ability to increase production capacity.
(Editor in charge: Wang Qingyu)
Disclaimer:China Net Finance reprints this article for the purpose of conveying more information and does not represent the views and positions of this website. Article content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.