The national development and Reform Commission announced on March 1 that on February 28, the national development and Reform Commission held a teleconference to make comprehensive arrangements for further improving the coal market price formation mechanism.
The meeting pointed out that coal is an important primary product related to the national economy and the people's livelihood. In the future, China's energy consumption still needs to be based on the basic national conditions dominated by coal. Further improve the coal market price formation mechanism, guide coal prices to operate within a reasonable range, and promote the effective transmission of coal and electricity prices through market-oriented methods, which is conducive to stabilizing coal prices, electricity prices and enterprise energy costs, and provide strong support for maintaining the stable operation of the economy; It is conducive to promoting the coordinated and high-quality development of coal and electricity upstream and downstream, promoting the optimal combination of coal and new energy, better ensuring national energy security, and creating favorable conditions for sustained and healthy economic and social development.
We should further understand and improve the overall price range of coal, and ensure that the key measures of the meeting are in place, so as to form a reasonable price range and ensure the accurate operation of the coal market. We should adjust the supply and demand of the coal market, ensure reasonable and sufficient production capacity, strengthen the construction of the reserve system, improve the medium and long-term contract system, and strive to strengthen the supervision of performance; We should strengthen the expected management of the coal market, improve the production and circulation cost investigation system and market price monitoring system, standardize the behavior of price index, and timely take various means and measures such as reminding, interview, investigation and price intervention to guide the reasonable return of prices; We should strengthen the supervision of coal and electricity markets, strengthen the linkage supervision of futures and spot markets, antitrust supervision and price supervision and inspection, and investigate and deal with price violations in a timely manner.
"In the context of the new price formation mechanism and international energy tension, the volatility of the coal industry is expected to weaken." According to Yan Ming, analyst of China Galaxy Securities Co.Ltd(601881) Securities Research Institute, in the notice on further improving the coal market price formation mechanism issued by the national development and Reform Commission on February 24, the floating range of the new coal price formation mechanism is further narrower than that in the previous draft for comments, and the benchmark price is no longer set, while the price in the range is driven by the market, The price outside the range will be strengthened by policy regulation; In addition, the policy specifies that the coal-fired power price can be effectively transmitted within a reasonable range, and the coal-fired power generation enterprises can timely and reasonably transmit the change of fuel cost within the range of no more than 20% of the benchmark price.
Yan Ming believes that the mechanism of improving coal price is of far-reaching significance and helps to stabilize the expectation of long-term power coal contract price. Although there is still some room for the price of the long-term association to rise this year, it is expected to have a limited impact on the profitability of enterprises.
