The domestic coal market is fully liberalized next year without state intervention

The report on the cancellation of key contracts and advancement of thermal coal prices led by the National Development and Reform Commission has been submitted to the State Council. Since 2013, the domestic coal market will be fully liberalized and the country will no longer intervene in coal prices.

The market situation of oversupply of coal provides an opportunity for market-oriented reforms. According to industry experts, next year will be the lifting of major coal contracts, the implementation of coal prices, the state will no longer issue the annual inter-provincial coal railway transportation capacity configuration intention framework program. "After the cancellation of key contracts, coal mining companies and user companies have no ownership or affiliation, and they can order their products in an orderly, independent manner. The country no longer stipulates what are the key industries and key safeguard areas," said the expert.

In the same period, the Development and Reform Commission has solicited opinions on the "Guiding Opinions on Deepening the Reform of the Coal Market and Better Coordinating the Production and Transportation of Coal." Drafts for consultation are expected to be issued in late November and early December.

After the cancellation of the key coal-fired coal contracts, the price and capacity will be the tangled problems of coal-fired power plants.

A person from the Shanxi Coal Industry Department said: “At present, the power companies have many opinions on prices, and the wait-and-see mood is relatively strong. Some intention contracts have signed orders, but avoid prices. How to price is to decide whether the coal contracts will be signed smoothly next year. Whether the method can be more flexible, annual pricing, quarterly pricing, monthly pricing."

The existence of key coal contracts is a disguised form of protection for electricity, reducing operating pressures caused by rising coal prices. Therefore, another concern for the power plant is whether the price of electricity will increase correspondingly after the price of coal has risen sharply after the coal has coalized.

Participating in the development and Reform Commission program discussion experts said: "After the merger, if the coal price rises too high and the power plant suffers a substantial loss, the NDRC will consider raising the price of electricity in some regions. The merging and reforming committee pointed out that continuing to improve the coal price liaison mechanism, the emergence of coal prices When severe fluctuations occur, temporary measures are taken according to law."

In addition to difficult to determine the price, the railway capacity is another unknown problem. Transport capacity in Shanxi, Inner Mongolia and other places is still a bottleneck. Coal companies are concerned that the transport capacity for many years cannot be guaranteed. Whether the reform of railway transport capacity can be supported and whether the adjustment of the railway transport capacity policy is still uncertain.

At the same time, the power company's appeal is that all the coal transportation should be included in the national key transport plan, and the capacity should be allocated to the power generation group. The railway department should preferentially arrange and arrange coal transportation.