National Coal Operation in the First Half of 2014

Polaris Thermal Power Network News: Since the beginning of this year, the problem of oversupply in the national coal market has become increasingly prominent. The inventory remains high, the prices have fallen sharply, the economic efficiency of the industry has continued to decline, and the company's losses have further expanded. The coal economy has become more severe.

I. Basic situation of national coal economic operation

(1) Coal production and sales continued to decline. In the first half of the year, the national coal output was 1.816 billion tons, a year-on-year decrease of 1.8%; of which: 298 million tons in June, a year-on-year drop of 2%. The national coal sales amounted to 1.727 billion tons, a year-on-year decrease of 2.1%; among them, 284 million tons in June, a year-on-year decrease of 2.3%.

(b) Imports are high. In the first half of the year, imports of coal amounted to 158.87 million tons, an increase of 0.9% year-on-year; exports of 3.16 million tons, a year-on-year decrease of 22.4%; net imports of 157.71 million tons, an increase of 2.37 million tons, an increase of 1.5%. After a single month of continuous decline in imports from January to May of this year, imports in June reached 25.05 million tons, an increase of 12% year-on-year and an increase of 1.04 million tons month-on-month. In terms of coal, the import volume of brown coal in the first five months was 30.67 million tons, a year-on-year increase of 19.5%, and the import of coking coal was 25.32 million tons, a year-on-year decrease of 17.3%.

(c) Increased coal shipments. In the first half of the year, the national railway shipped 1.15 billion tons of coal, an increase of 7.79 million tons, an increase of 0.7%, of which 185 million tons in June, an increase of 1.5 million tons, an increase of 0.8%. The main shipping port shipped 339 million tons of coal, an increase of 7.3% year-on-year, of which 57.25 million tons in June, an increase of 9.1%.

(d) The inventory remains high. By the end of June this year, the entire social stock has been more than 300 million tons for 31 months. At the end of June, the coal enterprises had an inventory of 99 million tons, which was the highest level in history; the key power generation enterprises stored 79.06 million tons of coal for 23 days; and the main ports had coal reserves of 52.64 million tons, an increase of 39% over the beginning of the year. On July 22, the major ports in the north were Qinhuangdao, Caofeidian, Jingtang, Tianjin, and Huanghua. The coal storage capacity was 24 million tons, an increase of 56% over the beginning of the year, of which Qinhuangdao saved 7.4 million tons of coal, 6.51 million tons of Caofeidian and 2.3 million of Huanghua Port. t; the south mainly discharges 3.25 million tons of coal in Guangzhou Port and 5.9 million tons in Fangcheng Port.

(e) The price has dropped significantly. On July 18th, China's coal price index was 142.4, down 17.1 points year-on-year, down 19.4 points from the beginning of the year and down 80.4 points (36%) from the highest point in history (July 2008). On July 20th, Qinhuangdao 5500 kilocalas price was 490-500 yuan/ton, down by 140 yuan/ton from the beginning of the year, and down by 85 yuan/ton from the same period of last year; coking coal prices decreased by 200-250 yuan/ton from the beginning of the year, down 150 percent year-on-year. Yuan / ton. The national coal price has already dropped to the level of the end of 2007.

(6) The industry benefit continues to decline. In the first five months, the main business income of coal enterprises above designated size was 1,218.33 billion yuan, a year-on-year decrease of 6.6%; corporate profits were 51.26 billion yuan, a year-on-year decrease of 43.9%, and a decrease of 68.2% compared with the same period in 2012. According to the preliminary analysis, the current loss of coal enterprises has exceeded 70%. There are 9 provinces with industry-wide losses; of the 36 large-scale coal companies in the major coal-producing provinces, 20 have suffered losses, 9 have been at the edge of profits and losses, and more than 50% have lowered their wages. Some companies There have been delays, reductions, and wages.

(VII) Decline in investment in fixed assets. In the first half of the year, the investment in fixed assets of the coal mining industry was 193.5 billion yuan, a year-on-year decrease of 5.6%, which was 32.3 percentage points lower than the average annual growth rate of 26.7% during the “Eleventh Five-Year Plan” period.