China's coal supply and demand structure is facing adjustment

In the first three quarters of 2008, due to the continuous rise in international oil prices and coal prices, the rapid increase in domestic demand, the frequent occurrence of natural disasters and the rectification of small coal mines, the supply and demand situation of coal-fired oil and gas was generally tight. With the changes in the domestic and international environment, the current supply and demand of coal in our country has generally changed from “balanced” to “loose”. However, due to limited production and guaranteed prices of coal enterprises, coal supply and demand market in 2009 remains variable, and coal restructuring is imperative.
At present, the economic situation at home and abroad is still changing, and there are many uncertainties affecting coal production and transportation in 2009. From December 21st to 27th, the China Coal Transportation and Marketing Association hosted the 2009 National Coal Production and Transportation Joint Meeting in Fuzhou. According to the judgment, the total coal demand will continue to grow in 2009, but the growth rate will continue to fall. Coal market supply The situation will be further relaxed.
-- Slowing economic growth. Overall coal production and demand easing The coal price in 2008 experienced a parabolic market. After the coal price reached its highest point in August, the next few months entered a downward trend. This is closely related to the economic form of our country. The current overall situation is good, but the domestic and international economic situation is still very serious and complicated. From an international point of view, the financial crisis is accelerating from local development to the global, from the developed economies to the emerging market economies, and from the virtual economy to the real economy. From the domestic perspective, under the influence of the tight external environment of the international financial crisis, The risk of the economic downturn in China has increased, and the economic growth rate has become a major contradiction in the current economic operation. The slowdown in economic development will inevitably affect the supply and demand of coal. It is estimated that the total coal demand next year may fall by 6% to 8%.
Since August 2008, in September, with changes in the environment at home and abroad, for several years fast double coal production and demand growth fall, it has clearly emerged the overall easing trend. According to statistics, from January to October, the coal output of coal enterprises above designated size was 2.155 billion tons, an increase of 14.2%, of which, the chain's output was down by 4% in October; the national coal consumption output was 2.228 billion tons, an increase of 4.4%, an increase of 4.9 percentage points from the previous year; exported 38.28 million tons of coal, coal imports 35.92 million tons, down 11.5% and 15.2%, respectively. From January to October, the national railway transported 1.144 billion tons of coal, a year-on-year increase of 11%. From January to November, the country’s power generation increased by 8%, of which thermal power grew by 7%. It was down 7.1% year-on-year in October, of which thermal power declined by 13.7%. In October, the production of pig iron, crude steel and steel fell by 16.8%, 17% and 12.4% respectively.
With the further intensification of the impact of the global financial crisis on China's real economy, the country's coal market suffered from falling demand, falling prices, and increased inventory. The latest statistics show that in 2008, the national coal social inventory reached 184 million tons, an increase of more than 50 million tons from the beginning of the year. Also affected by the financial crisis, electricity demand has fallen sharply since the fourth quarter, and demand for coal has also been greatly reduced.
Due to changes in the supply and demand situation, since August 2008, coal inventories began to rebound. At the end of October, the total social stocks rose by 29.9% compared with July. The coking coal market prices in most regions have dropped sharply, and the thermal coal market prices have risen rapidly before mid-July. , and then began to callback, has now fallen below the limit level.
- Coal mine enterprises limit production and guaranteed price Next year's coal market surviving variables At this national coal production and transportation joint meeting, the coal industry and power, metallurgy and other key coal industries negotiated 2009 coal supply and demand volume and price . As the coal companies and power companies have their own opinions on the price, they are in a position to achieve the top position. Finally, none of the five major power groups has a single sign. In order to maintain coal prices, some coal companies have limited production and guaranteed prices, which will bring about changes to the coal market next year.
Take Shanxi, a major province of coal, as an example. On December 24th, the Shanxi Coal Industry Bureau issued a January 2009 raw coal production plan to key coal enterprises in the province. The total coal production of major coal enterprises is 18.15 million tons. Compared with the same period of last year, it has reduced by more than 30%.
According to statistics, the production limits of the six major state-owned key coal group companies in Shanxi Province are not the same. Among them, Shanxi Coking Coal Group's production plan for January 2009 was 4.1 million tons, which represented a reduction of more than 30% year-on-year, and the coal group’s production plan was 3.5 million. Ton, the year-on-year reduction in output was more than 38%, and the output cuts of Yangmei Group and Chun'an Group were also around 20%.
Shanxi's coal production and sales volume has been shrinking since October 2008. The growth rate of coal production and sales in the province dropped sharply, and the loading of coal railways plummeted month by month. According to statistics, in October, the province's raw coal production fell 9.21 million tons compared with September, a decrease of 15.53%, a decrease of 11.87 million tons compared with August, a decrease of 19.15%; the province's coal province sales decreased 2.38 million tons from September, a decrease of 5.5% This was a decrease of 8.89 million tons from August, a decrease of 17.87%. In November, the province's coal-railroad daily averaged 12,905 vehicles, an average daily decrease of 3,330 vehicles, a decrease of 20.51% over October; an average daily decrease of 4,554 vehicles, a decrease of 26.08%; an average daily decrease of 6,069 vehicles over August. 21.98%. At the same time, the arrears in coal purchase prices also soared. By the end of October, the province’s coal accounts receivable balance was 8.354 billion yuan, an increase of 6.727 billion yuan from the end of June.
The nationwide coal production and transportation needs to be joined together with the assembly meeting. Large and small power companies have been losing money. The five major power groups unanimously oppose the contract coal price increase. In view of this situation, many coal companies believe that the current coal production capacity is indeed higher than the market demand, so the reduction in production is a measure to adapt to the market situation. Relevant government departments also believe that, in order to implement the principle of “determining products according to their needs, and setting sales according to sales,” the total amount should be properly regulated, the output of coal enterprises should be reduced, and the balance between supply and demand of coal should be ensured.
In addition, the state has stepped up efforts to rectify non-standard coal companies, especially the closure of illegal small coal mines, which will also bring about changes to the coal supply and demand market next year.
-- The adjustment of the total coal demand to maintain the adjustment structure is imperative. According to the characteristics of China's coal-rich, low-gas, and oil-poor energy resources, the status of coal as the main energy source in China will be difficult to change over the long term. Although in the short term, there will be periods of supply, demand, varieties of supply, regional supply shortages and loose supply. However, in the long run, as China’s economy continues to maintain a steady and rapid development, the total coal demand will remain A certain amount of growth.
The economic situation next year is not yet clear. As a coal enterprise, it is necessary to organize production in accordance with the market supply and demand relationship and according to the coal mines' approved capabilities, maintain the normal coal mining area continuity and extraction balance, and improve the stable production capacity of coal mines. Vigorously adjust the structure, actively develop new products, organize the production of marketable products according to user needs, and improve coal utilization efficiency is the best choice for coal companies during the adjustment of the coal supply and demand market.
The news from the National Development and Reform Commission will encourage and support advantageous companies to implement acquisitions, mergers and regional reorganizations, build large-scale coal enterprise groups, break geographic and industrial boundaries, and encourage integrated operations such as coal-fired power generation, coal-based steel, and coal-based coke chemicals, and continue to restrict Coal and other resource products and low value-added products are exported.
Therefore, in view of the complicated market environment next year, coal companies should strengthen market monitoring and forecasting, scientifically organize production, prevent excess products, overstock inventory, strictly implement industrial policies and access standards, and strictly prohibit illegal construction and “grant small and large”, and control. Blind growth in production capacity.

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