Zhongxin Finance, February 24 (Zuo Yukun) In order to strengthen the regulation and supervision of coal market prices and guide coal prices to operate within a reasonable range, the National Development and Reform Commission recently issued the "Notice on Further Improving the Coal Market Price Formation Mechanism".

  Is the reasonable range of coal prices the government's price?

What to do when the coal price exceeds the reasonable range?

How will coal prices trend in the future?

On the 24th, the National Development and Reform Commission responded.

Data map: Workers load coal to vehicles.

Photo by Hu Guolin

Guide coal prices to operate within a reasonable range

  Wan Jinsong, director of the Price Department of the National Development and Reform Commission, introduced that the improvement of the coal market price formation mechanism this time, simply put, is to adhere to the basis that coal prices are formed by the market, clarify the reasonable price range, strengthen range regulation, and guide coal prices at a reasonable price. It operates in different regions to achieve a better combination of efficient markets and promising governments.

  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 570-770 yuan per ton (tax included) in the near term, 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 in the mining process in key coal-transferring areas (Shanxi, Shaanxi, and Mongolian provinces) 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.

The reasonable range of coal prices is not government pricing

  Wan Jinsong said that the reasonable range of coal prices is not government pricing, but is essentially a means of expected management and the goal of coal price regulation.

  The further improvement of the coal market price formation mechanism this time is neither a return to government pricing nor laissez-faire.

When the coal price is within a reasonable range, give full play to the role of the market mechanism, let market entities trade independently to form prices, and government supervision must be “in place and not offside”, and improper administrative intervention shall not be carried out; once the price exceeds a reasonable range, regulatory measures shall be taken immediately , to promote the return of coal prices to a reasonable range.

When the coal price exceeds a reasonable range, use various measures to guide the return

  Wan Jinsong also introduced three safeguard measures.

The first is to improve the adjustment capacity of coal supply and demand.

Ensure 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.

  The second is to strengthen the management of market expectations.

Further improve the coal production cost investigation and price monitoring system, and standardize the compilation and release of coal price index.

When the coal price exceeds the reasonable range, the means and measures stipulated by the "Price Law" and other laws and regulations shall be fully used to guide the reasonable return of the coal price.

  The third is to strengthen the supervision of coal and electricity markets.

Inappropriate administrative intervention on coal and electricity prices within a reasonable range is strictly prohibited, and at the same time, 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.

Data map: Opencast coal mine.

Curb speculative capital's malicious speculation on coal price

  Wan Jinsong said that from the perspective of recent years, the irrational rise in coal prices has been driven by excessive capital speculation.

This time, we further improved the coal market price formation mechanism and proposed a reasonable range of coal prices, which is to delineate the boundary line of government price regulation and supervision in advance, and also set a "traffic light" for capital, which is conducive to stabilizing market expectations and compressing the space for speculation. It can effectively prevent malicious speculation by speculative capital.

  In the next step, we will continue to work with relevant departments to pay close attention to the trend of speculative capital, strengthen the joint supervision of the coal futures spot market, fight against malicious speculation of speculative capital, focus on regulating the order of the coal futures spot market, and promote the coordinated and healthy development of the futures spot market.

Coal prices are expected to fall reasonably

  Peng Shaozong, deputy director of the Price Department of the National Development and Reform Commission and a first-level inspector, said that in the future, it is expected that coal prices will reasonably fall from the current level, which will help further stabilize the transaction price of coal-fired power generation market.

  At present, coal production and market supply are generally stable, daily output is stable at over 12 million tons, coal storage in power plants is at a historically high level, and coal price stability has a solid foundation.

The introduction of the policy to improve the coal market price formation mechanism has released a clear signal to the industry and the market that the state will further strengthen the coal market price regulation and supervision, which will help guide the upstream and downstream to form stable market expectations as soon as possible, curb capital speculation, and guide coal prices in the current A reasonable drop in level.

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