The Energy Administration regulates the total amount of coal to save the market

The three quarterly reports in 2014 will close soon. Statistics show that the performance of listed coal companies is not optimistic. Among the companies that have announced the third quarterly report, the net profit of the Qicheng Group has dropped from the previous year. In response to this, yesterday's National Energy Administration "Guiding Opinions on Regulating the Optimization of the Total Coal Industry" (hereinafter referred to as "Opinions") has saved the market. The industry analysts believe that the driving force behind the continued rise in coal prices is still insufficient. It is expected that prices will stabilize during the year.

8 Province-wide industry-wide losses The China Coal Industry Association recently announced that during the third quarter of the coal economy, it stated that there are currently 8 provinces and regions that have suffered losses in the coal industry, and the total loss of coal enterprises in China is still above 70%.

According to the statistics of flush flush iFinD, as of October 28, a total of 30 listed coal companies announced the third quarter of 2014, with 23 coal companies showing a year-on-year drop in net profit, accounting for 76.7% of the total, Baihuacun, SDIC The most significant loss was in comparison with the previous year. Shenhuo Group, Antai Group, Pingzhuang Energy, Lanzhou Kechuang, Yuzhong Energy and Coal Gasification dropped sharply by over 100% year-on-year.

Since the beginning of this year, the continuing downturn in the coal coking industry has caused Baihuacun's net profit in the third quarter to drop by more than 522.2% year-on-year, resulting in a loss of 140 million yuan.

Shenhuo shares net profit of -3.7 billion yuan, and coal gasification net profit of -614 million yuan. Shenhuo said that the company’s loss was mainly due to the sharp decline in the prices of main product coal and electrolytic aluminum, and the average price of coal product tax was RMB 151.8 yuan/ton lower than the average price of the same period of last year. The average price of electrolytic aluminum products in Henan was higher than that of the previous year. The average price in the same period dropped by RMB 1174/ton.

It is worth noting that the net profit of China's three major listed coal companies, China Shenhua, China Coal Energy, and Shaanxi Coal, all dropped by 12%, 74.9% and 56.5% respectively year-on-year. China Coal Energy stated that due to the great changes in the supply and demand situation in the domestic coal market in 2014, the continued low coal prices may cause the company’s accumulated net profit in 2014 to decrease significantly compared with the same period of last year; Shaanxi Coal Mine attributed to the company The dominant coal market is in a grim situation, and the continuous decline in coal prices has had a significant impact on the company's operating performance. If the coal prices continue to decline, it is expected that the coal mining industry in Shaanxi will experience a significant decrease in its fourth quarter operating results.

The “Opinions” issued by the State to rescue the market points out a series of specific opinions on the total control of the coal industry, optimizing the layout, project approval, production capacity management, and deepening reforms.

In the coming period, the eastern region will no longer build new coal mine projects in principle; the central region (including northeast China) will maintain reasonable development intensity; in accordance with the “retreat to build one” model, moderately build resources to exhaust coal mine production continuation projects; the western region will increase The overall development of resource development and ecological environment protection will focus on the needs of large-scale coal-electric power bases with a power output of tens of millions of yuan, and coal consumption for modern coal chemical projects. Under the premise of making full use of the existing coal mine production capacity, new supporting coal mines will be built. project.

Analysts believe that the introduction of opinions by the National Energy Administration to regulate and control the total coal volume and optimize the distribution of the coal industry is a series of coal rescue policies introduced recently by the central government. In the long run, if various aspects of the coal industry and the various entities in the coal industry can implement support policies in place and the supply and demand structure is further improved, the coal industry may still have room for recovery.

Analysts said that there are positive factors for the market towards the end of the month. With the accelerating winter coal storage process and the shrinking procurement of foreign trade coal, due to policy factors and the end of the year's pricing negotiations on new coal contracts, large coal companies raised the probability of sewer coal prices in November. Based on this judgment, the downstream is rising. Before the price is paid in advance, the current enthusiasm for loading ships is high, and at the end of the month, the shipping market has also experienced significant price increases.

Sources pointed out that large coal companies such as Shenhua will again raise coal prices on November 1. Despite the recovery in the coal market, the industry believes that good days will not be too long. Analysts said that from the understanding of the relevant coal enterprises in Inner Mongolia, the sales of various mines in various regions have now improved significantly compared with the previous period. However, most traders believe that this is only temporary, and the driving force behind the continued rise in coal prices is that in the later period. Still insufficient, it is expected that prices will stabilize during the year.