China coal association: coal market supply and demand to loose direction

Held on December 4, 2020 annual national coal trade fair, secretary of the party committee, President of China coal industry association Liang Jiakun said that the current coal industry development bottleneck problems still outstanding, high quality coal increased difficulties of emergency supplies, and downward pressure on coal economy operation, system and mechanism innovation and supply side synergistic effect to improve the structural reform, coal enterprise tax burden problem is outstanding, the old mining area coal enterprise transformation development faces many difficulties.

In the analysis of the trend of the coal market, liang jiakun pointed out that the overall growth rate of coal consumption has slowed down this year, coal consumption is expected to maintain a small increase in the whole year, coal production to maintain a steady growth, the country's coal market supply and demand has changed from the overall balance to loose direction.

But it is worth noting that it is more difficult to secure emergency supplies of coal.On the one hand, structural changes in power supply and demand have led to an increase in peak-valley difference, with the largest peak-valley difference accounting for nearly 50% of the largest load in large and medium-sized cities. As the proportion of clean energy power generation continues to increase, coal power is increasingly affected by seasonal extreme weather, and the pressure of peak regulation is increasing.On the other hand, the distribution of coal industry and regional supply patterns continue to change. Coal production is further concentrated in shanxi, shaanxi, Mongolia, ning and new China, and some traditional coal transfer provinces have become transfer provinces.

Coal economy is also facing downward pressure.Since the beginning of this year, the release of coal production capacity has accelerated, while the growth rate of consumption has slowed down.From January to September, the profits of coal enterprises above designated size across the country fell by 3.2%, and the cyclical growth momentum of the coal economy was significantly weakened.In the coming period, with the continued release of new coal production capacity and the continuous improvement of new energy development level, the supply of coal market will be further relaxed.

At the same time, it is more and more difficult to dispose the assets and debts of the closed and exited coal mines, the problem of personnel placement, enterprises running the society, as well as the enterprise financing difficulty and expensive problem is very prominent, so it is more and more difficult to settle the personnel of the closed and exited coal mines.

Liang jiakun said, the actual value added tax tax on coal products at 10 percent, higher than the national average level, the company's internal new and old mining machine profit imbalance, but can not be combined to calculate income tax, leading to some enterprises while the loss while paying income tax.For example, the depletion of coal resources, the single structure of production capacity, serious brain drain, insufficient policy support and insufficient equipment funds have seriously restricted the transformation of old mining areas. In particular, the wage level of coal miners is lower than that of other industries, and one third of old mining areas are still in deficit.

He stressed that the above the solution of the difficulties and problems need to be further structural reform efforts to consolidate the coal supply side, stick to "medium and long-term contract system" and "base price plus floating price" pricing mechanism, strengthen the coal market research, organization of production and business operation according to regulation in accordance with the law and strengthening industry self-discipline and good faith management, the safeguard coal economy running smoothly for a long time.


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