This year, Shanxi Coal expects to cut production by more than 100 million tons. Many downstream companies still cannot avoid starvation.
In 2005, the "coal waste" was like a person suffering from a cold, sometimes light, sometimes heavy, and it always had to happen once in a while. Frequent attacks on the “coal barren†have given people some immunity, but the recent “coal barren†has made the downstream users of the coal feel a lot of pressure—according to the forecast of Shanxi Coal Industry Bureau, Shanxi Province in 2006. The supply of coal will be reduced by more than 100 million tons. For many downstream companies suffering from the 'coal shortage' in 2005, there is still no need for 'starving' in 2006.
The closure of small coal mines is a foregone conclusion. There are more than 4,000 coal mines in Shanxi, a major province of coal, of which more than 3,000 are small mines. There are only 700 state-owned ore mines, and the pattern of 'multi, small, scattered, and disordered' coal production has long been behind Excessive mining has brought serious consequences to Shanxi: waste of resources, environmental pollution, and ecological destruction. The most important is the frequent occurrence of mine disasters. Since 2000, 70% of the province’s coal mines have occurred in illegal coal mines. Yu Youjun, governor of Shanxi Province, said that the order of production of coal is chaotic and measures must be taken to “save money at the same time†to lay the foundation for the closure of the coal mine.
According to the “Decision of the People's Government of Shanxi Province on Severely Cracking down on Illegal and Unlawful Coal Mines to Effectively Stop Serious and Serious Accidents†and “The Provincial Work Plan for Strictly Cracking Down on Unlawful and Unlawful Coal Mine Special Actionsâ€, since September 19, 2005, Shanxi Province has cracked down on illegal and illegal activities. Coal mine special operations, as of mid-December, the province closed a total of 1547 illegal illegal mining dens, discovered more than 53 cross-border mines. On December 15, the 11 inspection and acceptance teams sent by the provincial government went to the cities to check and accept the special operations against illegal coal mines.
In addition, the Coal Industry Bureau of Shanxi Province stipulates that coal that does not have ticket sales may not be shipped or entered into the market in the future, and no unit or individual may purchase coal without a 'coal sale ticket'. This measure can 'control' two types of behavior: one is unlicensed mining, and the second is over production and limited production. Because the management agency set up a card at the transportation center, the coal extracted from these two types of behavior cannot be transported out of Shanxi.
It is estimated that the effect of reducing production of more than 100 million tons of shutting down small coal mines is being revealed by the decline in the output of small coal mines. According to statistics from Shanxi Coal Industry Bureau, from January to October 2005, the province’s cumulative coal output was 401.72 million tons, an increase of 14.96 million tons year on year. However, local state-owned coal mines and township coal mines decreased by 3.76 million tons (5.49%) and 13.73 million tons (10.27%) year-on-year respectively. The Shanxi Provincial Economic Committee believes that under the influence of suspension of production and rectification, the growth of coal production in Shanxi Province is at a low speed. Statistics from the Statistics Bureau of Shanxi Province showed that from January to November 2005, the province’s accumulated production of raw coal reached 394 million tons, an increase of only 8.5% year-on-year.
The Shanxi Coal Industry Bureau believes that with the implementation of a series of safety improvement measures such as cracking down on private excavation, shutting down illegal mines, eliminating obsolete production capacity, and implementing resource integration, Shanxi's coal production will show a downward trend. According to the deployment of coal mines in Shanxi Province in 2005, the total number of mines will be 30% lower than in 2004. By the end of June 2006, about 1200 coal mines will be cancelled and the closure of relevant coal mines will be implemented. Conservative estimates will reduce coal production by about 80 million. Ton; Severely cracking down on private excavation and over-harvesting coal mines, and has already banned the elimination of more than 3,000 illegal coal mining sites, will reduce production by 30 million tons; to ensure safety in production, will continue to increase efforts to curb super capacity production, the province will reduce Super capacity production is about 10 million tons. The three projects combined to reduce coal production by 120 million tons in 2006. Taking into account the increase in production capacity of some 10 million tons of new and expanded mines in 2006, it is expected that the supply of coal in Shanxi Province will decrease by more than 100 million tons in 2006.
Reduced production will not stimulate the price increase Since 2005, Shanxi coal prices have experienced a phased fall, but the overall situation is still running at a high level, and economic efficiency has maintained rapid growth. With the increase in output of 3.87%, the coal industry recorded a profit growth of 81.4%, and the newly added profits accounted for 134.3% of the province's newly added profits. The 100 million tons of coal produced in Shanxi Province will not cause a 'coal waste' and thus stimulate coal prices to rise again, which has attracted the attention of all parties.
Industry insiders believe that the coal market will continue to maintain a tight and tight state due to the rising international crude oil prices and the demand for large-scale electric generating units to be put into operation in recent years; chemical coal will continue to be driven by the demand for chemical fertilizers and other chemical products. Maintain steady growth; the coking coal market is affected by the sluggish coke industry and changes in the steel market, market demand has stabilized, and prices have gradually declined. Although coal supply in Shanxi Province basically met the social needs in 2006, the contradiction between some coal types, tight schedules and regional shortages was inevitable. Affected by this, coal prices may have significant fluctuations.
It is understood that due to the illegal coal mine closure, there is a serious shortage of coal in the coking plant in Linyi City, and coal prices have risen slightly. In addition, coal users in other industries have also felt pressure. Fertilizer companies are generally concerned about this. According to reports, some coal-based fertilizer companies have already accounted for more than 60% of the total production cost of raw coal. The rise in coal prices has led to more than 80% of nitrogen-based fertilizer companies that use coal as the main raw material.
The closure of small coal mines is a foregone conclusion. There are more than 4,000 coal mines in Shanxi, a major province of coal, of which more than 3,000 are small mines. There are only 700 state-owned ore mines, and the pattern of 'multi, small, scattered, and disordered' coal production has long been behind Excessive mining has brought serious consequences to Shanxi: waste of resources, environmental pollution, and ecological destruction. The most important is the frequent occurrence of mine disasters. Since 2000, 70% of the province’s coal mines have occurred in illegal coal mines. Yu Youjun, governor of Shanxi Province, said that the order of production of coal is chaotic and measures must be taken to “save money at the same time†to lay the foundation for the closure of the coal mine.
According to the “Decision of the People's Government of Shanxi Province on Severely Cracking down on Illegal and Unlawful Coal Mines to Effectively Stop Serious and Serious Accidents†and “The Provincial Work Plan for Strictly Cracking Down on Unlawful and Unlawful Coal Mine Special Actionsâ€, since September 19, 2005, Shanxi Province has cracked down on illegal and illegal activities. Coal mine special operations, as of mid-December, the province closed a total of 1547 illegal illegal mining dens, discovered more than 53 cross-border mines. On December 15, the 11 inspection and acceptance teams sent by the provincial government went to the cities to check and accept the special operations against illegal coal mines.
In addition, the Coal Industry Bureau of Shanxi Province stipulates that coal that does not have ticket sales may not be shipped or entered into the market in the future, and no unit or individual may purchase coal without a 'coal sale ticket'. This measure can 'control' two types of behavior: one is unlicensed mining, and the second is over production and limited production. Because the management agency set up a card at the transportation center, the coal extracted from these two types of behavior cannot be transported out of Shanxi.
It is estimated that the effect of reducing production of more than 100 million tons of shutting down small coal mines is being revealed by the decline in the output of small coal mines. According to statistics from Shanxi Coal Industry Bureau, from January to October 2005, the province’s cumulative coal output was 401.72 million tons, an increase of 14.96 million tons year on year. However, local state-owned coal mines and township coal mines decreased by 3.76 million tons (5.49%) and 13.73 million tons (10.27%) year-on-year respectively. The Shanxi Provincial Economic Committee believes that under the influence of suspension of production and rectification, the growth of coal production in Shanxi Province is at a low speed. Statistics from the Statistics Bureau of Shanxi Province showed that from January to November 2005, the province’s accumulated production of raw coal reached 394 million tons, an increase of only 8.5% year-on-year.
The Shanxi Coal Industry Bureau believes that with the implementation of a series of safety improvement measures such as cracking down on private excavation, shutting down illegal mines, eliminating obsolete production capacity, and implementing resource integration, Shanxi's coal production will show a downward trend. According to the deployment of coal mines in Shanxi Province in 2005, the total number of mines will be 30% lower than in 2004. By the end of June 2006, about 1200 coal mines will be cancelled and the closure of relevant coal mines will be implemented. Conservative estimates will reduce coal production by about 80 million. Ton; Severely cracking down on private excavation and over-harvesting coal mines, and has already banned the elimination of more than 3,000 illegal coal mining sites, will reduce production by 30 million tons; to ensure safety in production, will continue to increase efforts to curb super capacity production, the province will reduce Super capacity production is about 10 million tons. The three projects combined to reduce coal production by 120 million tons in 2006. Taking into account the increase in production capacity of some 10 million tons of new and expanded mines in 2006, it is expected that the supply of coal in Shanxi Province will decrease by more than 100 million tons in 2006.
Reduced production will not stimulate the price increase Since 2005, Shanxi coal prices have experienced a phased fall, but the overall situation is still running at a high level, and economic efficiency has maintained rapid growth. With the increase in output of 3.87%, the coal industry recorded a profit growth of 81.4%, and the newly added profits accounted for 134.3% of the province's newly added profits. The 100 million tons of coal produced in Shanxi Province will not cause a 'coal waste' and thus stimulate coal prices to rise again, which has attracted the attention of all parties.
Industry insiders believe that the coal market will continue to maintain a tight and tight state due to the rising international crude oil prices and the demand for large-scale electric generating units to be put into operation in recent years; chemical coal will continue to be driven by the demand for chemical fertilizers and other chemical products. Maintain steady growth; the coking coal market is affected by the sluggish coke industry and changes in the steel market, market demand has stabilized, and prices have gradually declined. Although coal supply in Shanxi Province basically met the social needs in 2006, the contradiction between some coal types, tight schedules and regional shortages was inevitable. Affected by this, coal prices may have significant fluctuations.
It is understood that due to the illegal coal mine closure, there is a serious shortage of coal in the coking plant in Linyi City, and coal prices have risen slightly. In addition, coal users in other industries have also felt pressure. Fertilizer companies are generally concerned about this. According to reports, some coal-based fertilizer companies have already accounted for more than 60% of the total production cost of raw coal. The rise in coal prices has led to more than 80% of nitrogen-based fertilizer companies that use coal as the main raw material.
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