China's coal social inventory is about 220 million tons

Wang Xianzheng, president of the China Coal Industry Association, said today at the commendation meeting for energy-saving and emission-reduction across the industry that the current coal market in China is in the balance of total supply and demand, relatively loose, structural tension, and surplus. The structural surplus is the current coal market in China. The main contradiction.

Wang Xianzheng said that the so-called structural tensions and surpluses refer to regional, seasonal, and species-based tensions and surpluses. At present, the main contradiction in the coal market in China is structural overcapacity, not structural tension.

Wang Xianzheng explained that the basis for such judgments comes from three aspects: First, the social inventory of coal has been at a high level. It is understood that China’s current social inventory of coal is about 220 million tons, and there has been no significant change in 22 months. Secondly, accounts receivable of coal enterprises are increasing month by month. By the end of September, accounts receivables of coal enterprises above designated size in China have increased by more than 36% from the same period of last year. Once again, it is now in the fourth quarter. It should be the peak season for coal production and sales. However, this year, the industry is generally busy but not in a hurry, indicating that the current supply and demand in the coal market is not a big problem.

According to Wang Xianzheng, at present, China’s production capacity of coal mines under construction and under construction is close to 3.8 billion tons, of which 2.3 billion tons have been approved, and over 1.4 billion tons of capacity are under construction and will be put into production. This has basically reached the “12th Five-Year Plan” that the country plans to plan. "End of coal production capacity. "So coal companies must have a clear understanding of the structural surplus." Wang Xianzheng said.

In view of the rise in coal prices that occurred in some regions earlier in the period, Wang Xianzheng believes that this fluctuation is the performance of the Chinese coal market and the international energy market. It is understood that the recent rise in international oil prices, Australia thermal coal, etc., Qinhuangdao 5500 kcal water coal prices rose basically the same.

Wang Xianzheng emphasized that in addition to understanding the major background of international energy price fluctuations, coal companies should also find out how much coal prices are increasing.

The real price increase of coal in this round of price fluctuations accounted for less than one-third of the total coal production capacity. “While being affected by the low profitability of the steel industry, the price of 700 million tons of metallurgical coal has not risen; among the 1.6 billion tons of coal, the price of the key contract coal of about 700 million tons has not moved; the price of coal in the provinces and districts has not been adjusted; The fluctuating coal market is less than 1 billion tons. The China Coal Industry Association hopes that coal companies will strictly follow the requirements of the National Development and Reform Commission to strengthen industry self-regulation and stabilize coal prices, said Wang Xianzheng.