Coal prices do not have the basis for a sharp rise

From the perspective of the external environment, Indonesia's coal imports account for a limited share of China's total consumption, which has little impact on the relationship between supply and demand in the domestic market

A paper ban once again brought coal to the forefront

From the fundamental analysis, it can be judged that the current coal price in China does not have the basis for a sharp rise

At the same time, Indonesia's own economy's dependence on coal exports does not support the country's long-term restrictions on coal exports

Looking at the supply side, with the continued efforts to ensure coal supply and increase production, China's coal supply and demand situation has improved significantly

On the demand side, unless extreme weather occurs frequently, it will be difficult for coal consumption to increase in stages like last year

Even taking into account the possible extreme situations, with the experience of increasing China's coal production and supply in 2021, China's coal production capacity is relatively flexible, and relevant departments can still regulate coal through measures such as ensuring coal supply and orderly electricity consumption according to demand expectations.

Coal is an important commodity related to the national economy and people's livelihood, and it is also the basic guarantee of China's energy security

　　From the perspective of medium and long-term development, the competent authorities should cherish the hard-won "window period" and avoid "headache and foot pain"
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In view of the national conditions of China's coal as the main energy source, combined with the fact that the construction of large-scale modern coal mines, especially intelligent coal mines has achieved results, and the degree of coal mine safety has been greatly improved, accelerate the research and establishment of China's coal mine flexible production capacity mechanism, according to market supply and demand changes, renewable energy output In order to reduce the fluctuation of the coal market, we will implement flexible management of production capacity for large modern coal mines
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At the same time, speed up the establishment of a long-term mechanism for coal price range regulation, guide coal prices to operate within a reasonable range, so that coal prices truly reflect the fundamentals of market supply and demand, prevent price fluctuations, and comprehensively implement policies to promote the healthy development of the coal industry chain and supply chain
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(Wang Yichen)

From: Economic Daily