Guarantee the stable and reliable supply of coal for power generation and heating, experts advise to improve medium and long-term coal contracts

"Special verification of the performance of coal medium and long-term contracts is an important part of regulating the signing of coal production, circulation and terminal consumption in China, ensuring the stable supply and price of coal and the stable development of the coal market for coal power and heating, which is conducive to coal production, circulation and final consumption.

On March 18, the National Development and Reform Commission announced that in order to further improve the performance of coal medium and long-term contracts, standardize signing behaviors, sign contracts, urge strict performance of contracts, and ensure stable and reliable supply of coal for power generation and heating.

The notice requires that all localities and relevant enterprises should conduct self-inspection and sorting out against the requirements of the contract performance policy, and promptly rectify those that do not meet the requirements

Fan Ruoying, a researcher at the Bank of China Research Institute, told the "Securities Daily" reporter that by signing medium and long-term contracts, coal prices can be locked in advance, which can effectively suppress the large fluctuations in coal prices and promote the smooth operation of the coal market

According to Zou Xuyuan, an analyst at Capital Securities, since late January this year, the coal price has been affected by the tight supply and the international coal price has risen rapidly.

"The establishment of a scientific coal market transaction price mechanism is to regulate the transaction behavior of coal supply and demand sides, regulate the scale of coal production and consumption, and minimize irrational competition in the coal and coal power markets

When talking about how to improve the medium and long-term coal contracts, Fan Ruoying believes that from a longer-term perspective, it is necessary to further improve the coal medium and long-term contract mechanism, and comprehensively implement policies from the aspects of strengthening supervision, policy support, and market-oriented guidance

Song Xiangqing suggested that a multi-dimensional monitoring mechanism for the signing and performance of coal medium and long-term contracts and contract prices should be established.