Huaneng Design Institute
Design consulting EPC general contracting project supervision and other whole process professional service institutions
National Development and Reform Commission: Coal trading will push long-term contracts
Coal deal will push long-term contracts
-- Interview with the relevant person in charge of the Economic Operation Regulation Bureau of the National Development and Reform Commission.
The 2017 National Coal Trade Fair will be held in November this year and will push for medium-and long-term contracts. It is understood that a few days ago, large coal enterprises and relevant power enterprises have made active contacts on the supply of thermal coal next year and reached a preliminary consensus on signing an annual agreement. In this regard, our reporter interviewed the relevant person in charge of the Economic Operation Regulation Bureau of the National Development and Reform Commission.
The person in charge said that coal mines and power companies plan to sign a medium and long-term agreement. This is a major event in the standardization of coal trading order and a combination of major deployments for the coal industry to implement supply-side structural reforms. It not only lays a good foundation for the production and operation of both the supply and demand sides, but also plays an important exemplary and leading role for more coal mines and users to sign medium-and long-term contracts as soon as possible. At the same time, it also sends a clear signal to the current irrational rise in coal prices, which is conducive to stabilizing the market and supply, and is conducive to further promoting coal production capacity reduction and realizing poverty alleviation development. It should be fully affirmed and actively supported in the work.
The person in charge believes that in the context of the successive rebound in coal production, transportation and inventory, prices have risen irrationally from fundamentals, which has aroused widespread concern in the industry. He believes that this trend is difficult to sustain and is not conducive to the sustainability of coal and related industries. For healthy development, effective methods should be used to promote a rational return of prices. Now, coal mines and power companies signed medium and long-term contracts, with multiple positive significance and role.
The person in charge said that the Economic Operation Regulation Bureau of the National Development and Reform Commission will actively encourage and vigorously support the signing of annual medium and long-term contracts between the supply and demand sides. First, in terms of transport capacity, the commercial and railway departments should be given priority to guarantee, so as to better adapt to the characteristics of balanced production operations of railways and improve the efficiency of transport capacity utilization. Second, the relevant government departments will actively create conditions for the performance of the contract. If the contract cannot be executed due to force majeure and other factors, they will help both parties coordinate resources and users to ensure that they will not suffer losses due to the inability to perform the signed medium and long-term contract. Third, in promoting the work of reducing production capacity and reducing production, we should seriously consider the benchmark price of medium and long-term contracts, and promote the basic balance of market supply and demand by flexibly adjusting the intensity and rhythm of work, so as to keep the price within a reasonable range as far as possible, not far away from the benchmark price, and create good conditions for contract performance. Fourth, strengthen the credit construction and credit supervision of relevant market entities. Guide relevant market entities to improve their credit records, improve joint incentives for trustworthiness and joint disciplinary mechanisms for breach of trust, promote the integrity of the contracting parties, keep their promises, and create a good social environment for the strict implementation of medium-and long-term contracts.
Key words:
Latest developments
Address: Floor 10, 18, 19 and 20, East Building, Building 1, Shun Tai Square, 2000 Shun Hua Road, High-tech Zone, Jinan City
