"salvation union" or nothing
The chinese coal industry association (cci) has repeatedly referred to the reduction of the price of a product in coal companies, but the coal companies have not implemented and are still in the midst of an “intensity war”, and what are the odds behind the eventual creation of the “payment alliance”
In the words of insider chinese coal, the price of coal is so low that the vast majority of coal companies are losing, and everyone has a claim for this price。
“equal capacity production is present in almost every coal mine, which is one of the factors contributing to the frequency of safety incidents.” an insider of a large coal state company told the economic observer that “the containment of excess capacity production and the elimination of excess capacity on the basis of security checks can be described as `one by one'”
Intra-cine sources told the economic watch that the price limit was mandatory, that the chinese coal industry association regulated penalties, monitored production data, as long as the target was met by the end of the year, and coordinated the time and areas of mining on their own。
And according to our last year's coal production of 3. 7 billion tons, 14 large coal bases of about 3. 4 billion tons and large and medium-sized coal companies of 10 per cent, it means that these companies will reduce production of about 340 million tons. This time, the coal group, which is limited in production, has a strong execution power. In august, china coal group's jinbei coal production company decreased by 3 million tons compared to the original plan, while other coal affiliates decreased by 1. 06 million tons from 1 to 10 august, while average coal sales declined in early august. The reduction of 20 million tons in the second half of the year was finally achieved。
But inside the shinhua group, they told the economic watch: “there's still no conclusion as to whether or not to reduce production.” this year, it was announced that the target of 50 million tons would be met。
Those within the coal conglomerates who confirmed the operation to limit the price of the product were silent about their implementation。
Monhai, a market analyst for maritime coal trading in qin emperor island, told the economic observer that coal companies competed for market shares and had never heard of active production restrictions, which were now compulsory, but could also lead companies to conceal some of their production。
One way, according to menghai, is to follow irregular channels, such as jinbei, where coal can be pulled to hebei and ticketed。
Coal expert li dynasty lin argued that the difficulties in the coal industry were the result of institutional causes and that under an incomplete market system there was a multi-party race between coal companies and downstream power companies for monopoly status. This production cut-off operation will be empty。
For their part, wang jun claimed that small coal mines had been repaired on the grounds of safe production, this time by small businesses。
According to sources, the import and export duty on coal has been raised to 3 per cent to improve the management of the coal import and export chain. “if it is true, the impact on imported coal trade is very significant”, zhejiang's deputy general manager of a company trading in imported coal told the economic watch that “it would be difficult to import coal trade, which would be more difficult to do, and there would be a group of imported coal traders closing down”. More than two years later, wang jun (alias) the owner of shanxi coal dreamt that the price of coal would decline for several consecutive years, even more than 50 per cent from its 2008 peak of $1,100, and that it would be impossible to find the right buyer, even if the price of coal went down。
Since june, the shinhua group has made seven successive downwards of coal prices, which have been criticized by the outside world, and even by experts, which, according to the secretary-general, would “unaffordable” large coal groups, such as coal conglomerates。
“the profits of selling one ton of coal are not enough to buy two bottles of beverages.” local governments such as shanxi are already saving the city in the wake of the “save the coal company.” this time, several major departments, such as the national development and development commission, and the energy agency, have jointly issued emergency electricity to curb the production of coal mines. Moreover, joint enforcement efforts have been made by several major sectors to “triple” to secure prices, requiring all medium-sized and large-sized coal companies to reduce production by 10 per cent, and all small coal mines, which produce less than 90,000 tons a year, are closing down, and policies are being developed to adjust import tariffs and limit the import of poor coal. But can the coal industry get out of this
It's normal to lose and lose
On 20 august, at 3 p. M., the coal trader, mr. Liu, was on the internet on time, but his staring at the newly released sea power coal price index was blocked, with an average price of 5,500 large carats of powered coal reported at $479 per ton, a further $2 decrease from the previous issue. The price of coal for the same coal at the beginning of the year was $591 per ton, a reduction of $112 in just eight months。
Not only mr. Liu, but also the insiders of the china coal group, whose prices are at an all-time low, most enterprises are “failed” and the losses and salaries are common. Data from the department of coal industry of shanxi province show that during the first quarter of this year, the province-wide coal industry earned an average profit of $5. 72 per ton of coal, a decrease of $13. 25 per year, or 69. 92 per cent. And now $5. 72 is not enough to buy two ordinary drinks。
According to an internal data source of the china coal industry association, the current deficit for coal companies is over 70 per cent, with more than 50 per cent of companies reducing their employees ' wages, and some companies still suffer from slow, reduced and unpaid wages。
According to economic observation reports, there are not many small mines left after the nationalization of shanxi, and about 70 per cent of the small mines have been closed by now. A coal owner in ordos also threw up bitter water, and 80 per cent of the small coal mine in the area stopped, even when it was open, and the miners were less alive and often rounded up to drink。
Not only did small-scale coal mines create a wave of closures, but the days of large and medium-sized coal enterprises also deteriorated and even reached the brink of bankruptcy. Around april this year, the largest private-sector coal consortium debt crisis in shanxi erupted, with a debt of nearly $30 billion and a final bankruptcy and reorganization that is still ongoing。
And the maggot group, which had been in crisis since the end of last year, is still “shaving to heal”. The company suffered a huge loss of $5 billion last year, reducing its staff by 5,400, dismissing all executives with an annual salary of more than $600,000, reducing its staff by 13,000 over the next three years, and moving 15,000 people from shandong to new mining areas and coal-chemical projects in the west。
Although the shaanxi coal corporation, which has been seeking to be listed for many years, finally came into existence at the beginning of this year to raise $9,833 million, its parent company, shaanxi coal chemical group, has a total debt of $280 billion and an asset liability of 80 per cent, with financing pressures of $48 billion this year。
On august 18, news came out that the four major coal companies in henan were in a state of loss and high levels of cash flow. In response, the government of henan province issued a “compassion” to banks, hoping that eight banks in the province, including the bank of china and the bank of commerce and industry of china, would refrain from compressing the size of their loans to the three companies and would give them modest interest rates。
The new chairman of the ccm group, yang yan, does not shy away from the company's “internal diplomacy” situation at this time, “the company faces unprecedented difficulties, high debt ratios, declining profitability and high financial pressures”, which is a microcosm of all coal companies, including the group, the five major coal companies in shanxi and the four major coal companies in henan。
The coal of the gods
As the main object of the coal market and the sale of coal in the ring, god has been lowering prices in various ways in the first half of the year。
In march, shinawatra was reduced once by $20 per ton, and since 28 june, the price of coal has been reduced seven times, cumulatively by around $55 per ton. Starting on 1 july, shinawatra once again reduced prices with a new marketing policy, and the price of his coal became the lowest price for underwater coal in the port of the ring sea。
For this reason, local coal companies like shanxi are dissatisfied that “god's 50 or 100 dollars is still profitable because of its low cost, but we are expensive and burdened, and we can't afford to fall any longer.” an insider of a coal company in shanxi says economic observation。
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