Profit space squeezes a new round of “coal power game” intensified

Editor's note: Since October, affected by coal prices and freight rates, coupled with the “Internet price reduction” policy introduced under the pressure of environmental protection, the profit space of thermal power companies has been squeezed, which has also led to a new round of “coal power. "Gaming" is becoming increasingly fierce.

Encountered price cuts, double price cracks on coal prices

Power companies openly resist coal and electricity protection and coal companies

Some analysts said that the price of coal has risen and it has caught up with the reduction in on-grid tariffs. This has caused a double blow to power companies. The interests of power companies have been impaired. Naturally, they are unwilling to follow the coal and electricity mutual protection policies to protect local coal companies.

The contradiction between coal and electricity is further escalating.

A few days ago, the entrance to a power plant in Shanxi Datong was blocked by a black car from a local coal company, causing more than 600 coal cars to be blocked at the gate.

The conflict was so fierce and open because the power plant was reluctant to use Datong's local coal and chose a relatively cheap coal in the field, which coincided with a short period of rising coal prices. Coal companies were naturally unhappy.

After the coal price plummeted, coal and electricity mutual protection was implemented to save the coal market, including in Shanxi and other places. However, at present, the on-grid tariffs have been lowered, coal prices have risen, and electricity companies have also been allowed to use local coal through coal and electricity mutual protection. Electricity companies are also not happy.

The contradictions that have been hidden for a long time finally broke out in the open.

A number of analysts have told reporters that coal-fired power conflicts are difficult to end in the short term. In the case of lower electricity prices and higher coal prices, in the short term, many power companies, including Shanxi, are unwilling to protect coal and electricity. The power companies must hope to reduce costs as much as possible and strive for profits.

Electricity prices cut coal prices

Coal and electricity contradictions once again intensified

It is understood that the coal used by the above-mentioned power plants is transported from Luzhou, Inner Mongolia, etc. instead of Datong's local coal. The local government requires local power plants to use local coal. However, because Datong's local coal prices are too high, the power plants are not willing to, So the door was blocked.

Zhang Zhibin, chief analyst of Black Industrial Group's black industry, told reporters that because of local protection, Datong's coal is more expensive than Inner Mongolia and Luzhou.

“The coal production in Inner Mongolia and Shanxi are different due to the different mining methods. The production of coal in Mengxi is more marketable, and the maximum cost price gap can reach 50 yuan/ton,” said Ting Bing, an analyst with Treasure Island.

After more than a year of falling, coal prices have briefly recovered in the near future.

Zhang Zhibin believes that coal prices have been falling for more than a year. Power plants do not actively purchase and inventory is low. Recently, the demand for winter storage has been slightly enlarged. In addition, the maintenance of the Daqin Line (from October 9 to October 28) has significantly increased the purchasing enthusiasm of power companies.

Recently, according to the notice of the National Development and Reform Commission, except for Yunnan and Sichuan, 31 province-level power grids in the country did not make adjustments. The other 29 provinces lowered their on-grid tariffs, with Shanghai, Jiangsu, and Zhejiang having the largest drop of 0.025 yuan, with the smallest decline in Heilongjiang. It was 0.006 yuan, and the average reduction rate of 29 provinces and cities was 0.014 yuan.

After the reduction of the on-grid tariff, the sales price has not been adjusted, and the profits of the power companies have no doubt been reduced.

Dai Bing also believes: "As the above coal-fired electricity conflict is difficult to quell, the current coal production capacity in the Mengxi region has not yet been released. In the case of power tariff cuts and rising coal prices, in the short term, many Shanxi power companies are reluctant to do so. The coal and electricity are mutually protected, and they hope to use the coal in Mengxi. The power companies are trying their best to reduce costs and strive for profits."

“After the on-grid tariffs are raised, the profits of the power companies are squeezed, and naturally they will seek low-priced coal, and then the power companies will use high-priced local coal. The power companies are certainly not happy.” Shanxi Hao Energy Analyst Zeng Hao interviewed by reporters It is also expressed.

Coal and electricity mutual protection unsatisfied

Power companies resisted publicly

In May, coal prices continued to drop, and Henan took the lead in promulgating policies related to “coal and electricity mutual protection” and encouraged local thermal power enterprises to use coal in the province to support the province’s coal companies to inventory.

Since then, Shanxi, Hunan and other provinces and cities have introduced coal and electricity protection policies to rescue the market.

Shanxi, as a coal-producing province, has seen coal prices fall so many coal companies have fallen into losses.

In order to crack down on the predicament of coal, Shanxi Province has issued 20 “coals”, clearly proposing to continue promoting integration of coal and electricity, coal and electricity, and encouraging coal companies to sign long-term contracts with key users such as electric power, metallurgy, coke, and so on. Coal and electricity harmony.

Although the coal and electricity mutual protection has caused the power companies to feel dissatisfied, but after all, the coal price is very low, and the profits of the power companies can at least be guaranteed.

However, at present, as the on-grid tariffs are lowered and coal prices rise, the profits of power companies are beginning to suffer.

It is not surprising that the first outbreak of this contradiction in Shanxi Province, where coal and electricity mutual protection is most thoroughly implemented, is gradually losing its effectiveness.

An insider of the power company told reporters that before the coal price fell and fell again, the coal companies suffered serious losses, and local governments introduced a coal and electricity mutual protection policy, hoping that the power companies use local coal. Today, as coal prices have risen and electricity prices have been lowered, power companies will naturally choose relatively cheap coal to reduce costs. At this time, if coal and electricity are still maintained, they will certainly be opposed by power companies.

It is worth noting that due to a flooding accident at the end of September in the Cao Coal Group's Caoxi Mining, Shanxi Province in early October demanded that all construction mines in the province (including new construction, mergers, reorganizations, and licenses, and other types of mines under construction) be discontinued. The safety rectification needs to be carried out after strict inspection and acceptance in accordance with the prescribed procedures.

In this regard, Lu Ping, analyst at China Merchants Securities, said the shutdown of mines under construction will help coal prices rebound in the short term, but the specific impact depends on the intensity of policy implementation, and the effectiveness of the policy needs to be further tracked. It is estimated that the impact of production will be about 5.5 million tons/month, equivalent to 1.8% of coal production, and the impact time will be about 2 months.

In addition, in November and December, coal peaks are used. The suspension of production for one month will lead to a tighter Shanxi coal market and stimulate the enthusiasm for the resumption of production.

The above factors have also led to the outstanding contradiction between the power companies in Shanxi coal market and coal companies.

Zhang Zhibin said: "Speak plainly, coal companies and power companies are also in conflict for the sake of interests. Coal prices fell more than a year, finally rose, it is time to make some money, this time the power companies do not buy Coal companies are naturally unwilling."

Zeng Hao also said that the price of coal has risen and it has caught up with the reduction in on-grid tariffs. This has caused a double blow to power companies, and the interests of power companies have been impaired. Naturally, they are unwilling to follow the coal and electricity mutual protection policies to protect local coal companies. Larger.

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