Shanxi coal orders will cancel the coal price will be fully marketable

The Coal Bureau of Shanxi Province officially issued a notification on the need for coal production and transportation in 2010 in the province last week. It requires all coal production and operating companies to sign a coal source purchase and sales contract as soon as possible after receiving the notification, and sign and sign the contract before November 25.
“This means that coal orders will not be held in Shanxi this year.” The head of the fuel department of one of the five largest power generation groups said to CBN yesterday: “As of now, we have not received any notification on Shanxi Coal Orders. This time has already begun in previous years."
Xie Bing, a researcher at the Shanxi Provincial Academy of Social Sciences Energy Research Institute, said in an interview with CBN that after the integration of coal resources in Shanxi, many large coal mines began to talk about themselves. “The most important thing in the past was the distribution of railway transportation capacity. This year, the railway transportation capacity is not very nervous."
Since Shanxi coal accounts for nearly three-fourths of the national total, Shanxi's coal production, transportation, and transportation needs over the years are all considered to directly affect the national coal trend in the next year. Previously, the coal ordering meetings of the previous calendar year have basically been confirmed by November.
After the first meeting in the province and later outside of the province regarding the coal production, transportation and demand in 2010, a person in charge of the Shanxi Provincial Coal Department said in an interview with CBN that coal production and operation companies must follow the principle of “first within and outside provinces, first before the railway. The principle of "and highways" can be used for overall resource allocation to ensure the fulfillment of contracts and maintain the basic stability of coal supply.
At the Shanxi Coal Ordering Conference that closed in mid-November last year, the power companies had chosen to shelve the price dispute and used the “guarantee quantity” as the main task of the ordering meeting. Eventually, the coal and power companies signed a contract for the contracting of 89.47 million tons of coal, specifying the price. All the contracts showed a slight increase.
The same as last year's national coal ordering meeting, although last year's Shanxi coal ordering meeting reached a partial contract, the price was not signed. "This year's coal and electricity are basically one-on-one talks," said the head of the company's fuel company, one of the five major power generation companies.
“The intention of Shanxi is very obvious. This year, in any case, the coal-fired power plant in Shanxi cannot be shut down,” said the head of the fuel company of the power generation company. Last summer, due to the high coal prices, the loss of power plants increased, and some power plants were out of coal and shut down. Shanxi once turned off power cuts. After the Spring Festival this year, more than half of Shanxi's power plant coal inventories are under the warning line of 7 days.
At the end of October this year, Tongji Coal Group, one of Shanxi's five major coal groups, once held a “minimum coal ordering meeting” in Beijing. At the meeting, the same coal group’s attitude was tough: the relevant authorities for the price of coal and electricity did not coordinate and the market would be completely Change.
Resource Integration This year, Shanxi has carried out a vigorous integration of coal resources. How can the company's interests be guaranteed after reorganization?
According to the Shanxi Provincial Department of Coal’s explanation, the legal coal production enterprises that participated in the signing of the coal source purchase and sale contract in 2010 are: coal production enterprises that have been independently retained by the provincial government, and coal mines that have been approved by the provincial government for normal production during merger and reorganization and integration transition period. The provincial government approved the construction of infrastructure, technological upgrading mines and legal coal washing companies.
In the distribution of railways, the factors of integration of coal resources have also been fully considered. "The basic principle for the province's coal production and transportation needs to link up with railway traffic distribution arrangements in 2010 is that no adjustment is made in principle for the railway traffic base of each coal enterprise in 2009," said the person from the Shanxi Province Coal Office.
The year 2010 is a crucial year for the coal mining enterprises in Shanxi Province to merge and reorganize and integrate the old coal production and sales pattern to a new pattern. The resources, affiliations, and sales channels of most coal enterprises in Shanxi Province will merge with the coal mining enterprises in the province. The progress of work has changed.
Taking into account these circumstances, in order to avoid major conflicts arising from the adjustment of the interest structure, the capacity base issued by the Shanxi Provincial Coal Authority in 2009 for various companies will not be adjusted during the transitional period in 2010. The Shanxi provincial government's opinion is that after the completion of the merger and reorganization of the coal mining enterprises in Shanxi Province, the company will make reasonable adjustments according to the actual situation of the enterprises. The base of the traffic volume of the enterprises that have been clearly vested in the channels shall be assigned to a new centralized unit.
Since then, the cooperation between Shanxi coal enterprises and major power groups in the country will be changed from government coordination to “free marriage”. "This is also a lesson for the National Coal Ordering Council. This year's National Coal Ordering Conference may also be the case. After last year's blank contract, it will be meaningless to open such an ordering meeting this year."

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