On October 19, the National Development and Reform Commission held a special symposium on coal on the working mechanism of energy supply this winter and next spring to study the implementation of intervention measures on coal prices in accordance with the law. The National Development and Reform Commission has made it clear that it will make full use of all necessary means stipulated in the Price Law to study specific measures to intervene in coal prices, promote the return of coal prices to a reasonable range, promote the return of the coal market to rationality, ensure a safe and stable supply of energy, and ensure the warmth of the people through the winter.

On the afternoon of October 19, the National Development and Reform Commission, on the one hand, presided over a forum on ensuring supply and stabilizing prices for key enterprises in coal, electricity, and oil and gas transportation, studied and arranged various key tasks for the people to stay warm during the winter, and put forward eight clear requirements for the work of ensuring supply and stabilizing prices in key enterprises in the next step.

On the other hand, the main responsible comrades of the Finance Department of the National Development and Reform Commission led a team to the Zhengzhou Commodity Exchange for investigation and held a special forum to study the price trend of thermal coal futures since the beginning of this year, strengthen supervision in accordance with the law, and strictly investigate and deal with capital's malicious speculation of thermal coal futures. Then, on the evening of October 19, the Zhengzhou Commodity Exchange decided to adjust the limit of the thermal coal futures contract by 10% from the night trading on October 20, 2021.

In addition, the party committee of the State-owned assets Supervision and Administration Commission also held an expanded meeting a few days ago to make further arrangements for coal enterprises, power generation and heating enterprises, power grid enterprises, petroleum and petrochemical enterprises, and pipe network enterprises to increase production and guarantee supplies. The meeting also pointed out that recently, state-owned central enterprises have urgently mobilized and deployed, tried every possible means to organize production, and mobilize all resources to expand production, increase sales and protect supply.

After a series of policy "combination punch" news was issued, on the evening of October 19, the main contracts of Zheng Alcohol, Coking Coal, Coke, Zheng Coal, EG and PVC fell, and all fell by the limit by the end of the day.

National Development and Reform Commission: use all necessary means to intervene in coal prices

Since October, thermal coal prices have continued to soar. As of October 15, the market price of Qinhuangdao thermal coal (Q5500, produced in Shanxi) has risen to 2242.5 yuan per ton. Since October, the average price has risen 52.3% from the September average price.

Zhang Yu, assistant director of Huachuang Securities Research Institute and chief macro analyst, recently told the Securities Times that PPI rose 10.7% in September from a year earlier, the highest reading since the data record (1996). The reason is that domestic inflation factors, mainly coal, continue to push up PPI compared with the same period last year. In the case of the gap between supply and demand of thermal coal in the fourth quarter, the inventory of superimposed supply side and demand side is still relatively low, the pattern of tight supply and demand of thermal coal may continue, and the price of thermal coal is likely to show a fluctuating trend, and there is a risk that it is easy to go up and down.

Recently, coal prices have risen rapidly, hitting record highs, pushing up production costs in downstream industries and adversely affecting power supply and winter heating, according to a news release released by the National Development and Reform Commission on October 19. Coal is an important basic energy, which is closely related to the national economy and people's livelihood. at present, the price increase has been completely divorced from the fundamentals of supply and demand, and the heating season is approaching, the price still shows a further irrational upward trend.

In view of the above situation, on the afternoon of October 19, the National Development and Reform Commission organized key coal enterprises, the China Coal Industry Association, and the China Electric Power Enterprises Federation to hold a special symposium on the working mechanism of energy supply this winter and next spring to study the implementation of intervention measures on coal prices in accordance with the law.

The National Development and Reform Commission has made it clear that it will make full use of all necessary means stipulated in the Price Law to study specific measures to intervene in coal prices, promote the return of coal prices to a reasonable range, promote the return of the coal market to rationality, ensure a safe and stable supply of energy, and ensure the warmth of the people through the winter.

Zheng Shang: the limit range of the thermal coal futures contract is adjusted to 10%.

On the afternoon of October 19, the main responsible comrades of the Finance Department of the National Development and Reform Commission led a team to Zhengzhou Commodity Exchange for investigation and held a special symposium to study the price trend of thermal coal futures since the beginning of this year, strengthen supervision in accordance with the law, and strictly investigate and deal with capital malicious speculation of thermal coal futures.

The meeting pointed out that at present, relevant departments are making every effort to increase coal production and supply, and the Zhengzhou Commodity Exchange should pay close attention to the price fluctuations of thermal coal futures trading, strengthen penetrating supervision of the futures market, sort out and investigate abnormal transactions, strictly investigate and deal with malicious capital speculation and public exposure in accordance with the law, effectively maintain market order, and create a good capital market environment for coal supply.

Subsequently, on the evening of the 19th, the Zhengzhou Commodity Exchange (hereinafter referred to as Zheng Shangsuo) issued a notice saying that it had been decided by the study.Since the night trading on October 20, 2021, the limit of the thermal coal futures contract has been adjusted to 10%.

Zheng Shang Institute also issued a notice, according to the study, starting from the night trading on October 20, 2021, the maximum number of non-futures company members or clients opening positions in thermal coal futures contracts 2204, 2205, 2206, 2207, 2208, 2209 and 2210 in a single day.

For non-futures company members or clients who exceed the trading limit for the first time, Zheng Shang requires to report the relevant situation and take regulatory measures to suspend the opening of positions for not less than 5 trading days. If the accumulative total of 2 trading days exceeds the trading limit, Zheng Shangsuo will take regulatory measures to suspend the opening of positions for not less than one month. If the circumstances are serious, they shall be dealt with in accordance with the relevant provisions of the measures for handling violations of the Zhengzhou Commodity Exchange.

The NDRC also made it clear that, together with relevant departments, it will pay close attention to the developments in the coal market and price trends, sort out and investigate the contradictions and problems existing in the work of ensuring supply and stabilizing prices, and coordinate and solve them in a timely manner; market regulatory departments will step up law enforcement and inspection, adhere to "zero tolerance", severely crack down on illegal activities such as the dissemination of false information, price collusion, price hoarding, and other illegal activities, and earnestly maintain market order.

Key enterprises will carry out eight measures to guarantee supply and stabilize prices.

On the afternoon of October 19, the responsible comrades of the National Development and Reform Commission also held a forum on ensuring supply and stabilizing prices for key enterprises in coal, electricity, and oil and gas transportation to study and arrange various key tasks for the people to stay warm during the winter. Responsible comrades of key enterprises such as State Railway Group, Petrochina Company Limited, China Petroleum & Chemical Corp, CNOOC, State Pipe Network Corporation, State Grid, Southern Power Grid, Huaneng, Datang, Huadian, State Power Investment, China Resources, State Energy, China Coal and other key enterprises attended the meeting.

The meeting put forward eight clear requirements for the next step of ensuring supply and stabilizing prices:The first is to further release coal production capacity. The second is to steadily increase coal production. The third is to guide coal prices to return to a reasonable level. Fourth, we will further implement the full coverage of medium-and long-term coal contracts in power generation and heating enterprises. The fifth is to promote the full generation of coal-fired power units. The sixth is to ensure the supply of gas in strict accordance with the contract. Seventh, strengthen the guarantee of energy transportation. The eighth is the linkage supervision of the spot market during the strengthening period.

On the release of coal production capacity, the meeting proposed that on the basis of the verified increase in coal production capacity, another batch of coal production capacity will be released through various ways, such as tapping the potential to increase the production capacity of production coal mines, speeding up the joint trial operation of basically completed coal mines, stepping up efforts to resume production in shutdown coal mines, and allowing coal mines to release emergency reserve capacity.

In terms of increasing coal production, the meeting proposed that all coal mines should organize production safely and reasonably at full load on the premise of ensuring safety in the fourth quarter. All localities should maintain normal production of coal mines during holidays and major activities, ensure that coal mines can produce as much as possible under safe conditions, and strive to produce more than 12 million tons of coal per day.

In guiding coal prices back to a reasonable level, the meeting pointed out that central enterprises should play a leading role in ensuring supply and stabilizing prices, focus on ensuring the needs of the people for warm coal for the winter, sign more medium-and long-term contracts, and strictly implement medium-and long-term contract coal prices. take the lead in reducing the price of coal traded in the market.

State-owned central enterprises: mobilize all resources to expand production, increase sales and protect supply

With regard to the requirement that "central enterprises should play a leading role in ensuring supply and stabilizing prices" put forward at the symposium on ensuring supply and stabilizing prices for key enterprises in coal, electricity and oil transportation on October 19, central enterprises have actually taken action in the near future.

On October 18, the party committee of the State-owned assets Supervision and Administration Commission held an enlarged meeting to redeploy and rearrange the central enterprises to further do a good job in ensuring energy and electricity supply this winter and next spring. The meeting made further arrangements for coal enterprises, power generation and heating enterprises, power grid enterprises, petroleum and petrochemical enterprises and pipe network enterprises to increase production and guarantee supply.

The meeting pointed out that recently, state-owned central enterprises have resolutely implemented the decisions and arrangements of the party Central Committee and the State Council, urgently mobilized and deployed, tried every possible means to organize production, and mobilized all resources to expand production, increase sales and guarantee supply. Coal enterprises take the initiative to increase production and guarantee supply, and the average daily output of coal increases steadily in the northeast region; power generation enterprises replenish coal stocks at any cost, quickly start coal-fired units before the shutdown, and go all out to send and supply more; power grid enterprises co-ordinate the resources of the whole network, strengthen operation monitoring, ensure the stable operation of the power grid, make a positive contribution to energy and power supply, and reflect the responsibility of state-owned central enterprises by practical actions.

The meeting stressed: it is necessary to further improve the political position, deeply understand the extreme importance of energy and power supply, strengthen organizational leadership in accordance with the requirements of state macro-control, tighten the responsibility of compaction, and make every effort to increase production and guarantee supply.

Specifically:

Coal enterprises should optimize the layout of production capacity and promote coal mines with the potential to increase production to release production capacity as soon as possible. Approved and built open-pit coal mines should speed up production and reach production, strengthen coordination with local state-owned enterprises to enhance supply capacity, and take the lead in implementing long-term association prices. we will actively ensure the heating of power generation and the demand for coal used by the masses.

Power generation and heating enterprises should make every effort to ensure that the units can be fully opened, and hydropower and nuclear power enterprises should "compete for electricity consumption" and generate more full power on the premise of ensuring safety, so as to actively improve the capacity of power supply.

Power grid enterprises should strengthen large-scale resource allocation and unified dispatching of the whole network, enhance the intelligent level of power grid, enhance the ability of absorbing new energy and safe operation, and cooperate with local governments to improve orderly power consumption plans. resolutely protect people's livelihood, winter heating, public services and other electricity demand

Petroleum, petrochemical and pipe network enterprises should increase production and reserves, increase oil and gas exploration and development, actively develop shale gas and coalbed methane, improve the operation efficiency of pipe networks, carry out diversified international oil and gas cooperation, and constantly improve the ability to guarantee supply. We must firmly adhere to the bottom line of production safety, resolutely do a good job in green environmental protection, adhere to the mission of responsibility, and play a good supporting and pillar role in the work of energy supply this winter and next spring.

It is reported that SASAC issued a method of rewards and punishments for the assessment of energy supply security this winter and next spring, taking the guarantee supply as the main indicator for the assessment of enterprises this year, and implementing a "one-vote veto" to further promote enterprises to shoulder their responsibilities and make more contributions to energy supply.