The price game in the domestic coal and electricity industries has not yet been successful. Foreign coal seems to have smelled the taste of business opportunities. Yesterday, a coal market analyst disclosed to reporters that the domestic coal companies’ strategy of “distribution by production†will surrender the domestic market, and China’s traditional coal importing countries such as Vietnam, Indonesia, and Australia are eager to expand their cooperation. China's exports, even in China to build coal plants. The threat from foreign coal is likely to force Chinese coal companies to take measures to keep the market. ?
Foreign coal companies understand China's coal situation?
A person who participated in the Fuzhou Coal Ordering Association revealed to reporters that BHP Billiton and other Australian coal companies had sent commissioners to Fuzhou to understand the coal conditions at the national coal ordering meeting held recently. The main purpose was to understand the trend of Chinese coal prices. For the acceptance of the bottom line and quantity of coal prices, a scientific arrangement will be made for the production and export of enterprises in 2009. ?
"Because of the rich coal resources in China, with the improvement of production capacity, ease of supply situation, and the situation of overstocking of coal products in larger regions, China's coal import and export policy may be adjusted appropriately." Deputy Chief Editor, China Coal Market Network Li Chaolin said in an interview with reporters.
Chinese coal prices will be inevitable?
Huang Teng, an international coal trade expert, believes that coal import and export freight is now very cheap, and foreign coal companies provide coal to domestic coal companies. The price is not a problem at all. If this becomes a reality, domestic coal companies will also have to start selling at lower prices to consolidate the domestic coal companies' position in China. ?
“The reduction of foreign coal companies’ prices and their promotion of exports may have little effect on Chinese coal companies, but if they are to build coal plants in China, they will cause some threats to Chinese coal companies and should attract attention.†The relevant person in charge of China Coal Energy Co., Ltd. is targeting foreign countries. The impact of coal companies entering the Chinese market told reporters. ?
He said that the coal import and export share is a fixed share of the government's quotas. If the foreign coal companies increase the export share of coal in China, the Chinese government will also issue corresponding policies to ensure the balance of the coal import and export market. If foreign coal companies build factories in China, they will inevitably compete with domestic coal companies for the Chinese market. At that time, Chinese coal companies will inevitably ensure their market share in the Chinese market through energy conservation, production, and price reduction. Foreign investment has accelerated the restructuring of the industry?
Foreign capital is eyeing the Chinese market in the coal industry and it also sounded the alarm for the Chinese coal industry. From this perspective, foreign involvement is not necessarily a bad thing. ?
Li Chaolin believes that if the market is right, foreign coal companies will enter the Chinese market, which in addition to being able to force Chinese coal companies to reduce coal prices, will also eliminate weak domestic coal companies. The analysis pointed out that after the intensified market competition, the domestic coal industry will accelerate the industry restructuring, and it is also the fastest way to promote energy conservation, consumption reduction, standardized management, and quality and quantity.
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