According to Xinhua News Agency, the National Development and Reform Commission recently stated that in order to strengthen the regulation and supervision of coal market prices, guide coal prices to operate within a reasonable range, promote the coordinated development of coal and electricity upstream and downstream, and ensure a safe and stable supply of energy, a notice has been issued recently to further improve Coal market price formation mechanism.
The notice is clear and guides coal prices to operate within a reasonable range. Judging from the market operation for many years, the medium and long-term transaction price of Qinhuangdao Port’s off-water coal (5,500 kcal) is relatively reasonable at 570 yuan to 770 yuan per ton (tax included), and the upstream and downstream can achieve better coordinated development. Considering factors such as reasonable circulation costs, production costs, etc., the reasonable range of medium and long-term transaction prices for coal mining in key coal-transferring areas (Shanxi, Shaanxi, and Mongolian provinces and regions) has been clarified accordingly. The National Development and Reform Commission and relevant parties have taken comprehensive measures to guide coal prices to operate within a reasonable range.
According to the notice, improve the coal and electricity price transmission mechanism. Guide coal and electricity prices are mainly formed through medium and long-term transactions. When the medium and long-term coal transaction prices are within a reasonable range, coal-fired power generation enterprises can fully transmit changes in fuel costs through market-oriented methods under the current mechanism, and encourage medium and long-term electricity transaction contracts. In order to effectively realize the transmission of coal and electricity prices, the terms of linking the on-grid electricity price with the medium and long-term transaction price of coal should be reasonably set.
The notice emphasized that the coal price regulation mechanism should be improved. Improve the ability to adjust supply and demand, ensure a reasonable and sufficient coal production capacity, improve the medium and long-term coal contract system, further enhance the government’s dispatchable coal storage capacity, and improve the reserve adjustment mechanism. Strengthen the management of market expectations, and make full use of the means and measures stipulated by laws and regulations such as the Price Law to guide the return of coal prices when coal prices exceed a reasonable range. Strengthen market supervision, strictly prohibit improper intervention in the price of coal and electricity operating within a reasonable range, strengthen the supervision of the performance of coal and electricity medium and long-term contracts, strengthen the joint supervision and anti-monopoly supervision of the futures and spot markets, and promptly investigate and deal with price violations.
The relevant person in charge of the National Development and Reform Commission said that further improving the coal market price formation mechanism is conducive to stabilizing market expectations, curbing malicious speculation by capital, and preventing coal prices from fluctuating; it is conducive to rationalizing the relationship between coal and electricity prices and promoting the coordinated development of upstream and downstream industries; It is conducive to giving full play to the role of coal as a basic energy source, and better guaranteeing the safe and stable supply of energy; it is conducive to stabilizing the energy cost of downstream enterprises and maintaining the stable operation of the economy.Amber Li Aisheng
