China to revise coal law to reinforce marketization

sxcoal.com Policy 2020-07-31 14:15:04

China's state planner on July 29 issued a draft to revise the coal law, to further improve the market-oriented mechanism.


The National Development and Reform Commission, the state planning body, pointed out "the state should establish and improve the mechanism for determining coal prices by the market, and encourage launching and publishing price indexes in key coal production regions, coal receiving regions and transfer ports to provide reference for participants."


Compared with the existing version, the draft also adds other new provisions about coal supply chain, import and export, transport, etc.


The draft proposes to strengthen monitoring, early warning and operational adjustment to ensure the entire chain – from production to supply, storage and sales – working safely and steadily.


It supports to improve the coal storage system with end users as the main body, local government as supplements, and encourages miners, transporters and users to sign medium- and long-term contracts.


The NDRC supports the import of high-quality types as supplements to domestic supply, and pledges to fend off inferior imports out of the gate.


Currently, the NDRC adopts strict rules to rein in seaborne thermal coal imports, but shipments of coking coal seem little affected.


In June, according to customs data, imports of lignite fell to 7.04 million tonnes, down 10.7% from a month earlier, while coking coal imports increased 30.7% to 6.26 million tonnes.


In terms of transportation, the draft proposes that local governments at or above the county level should promote construction of coal transportation channels and supporting facilities. The state guarantees the railway transportation under medium and long-term contracts.


The draft also deletes clauses incompatible with current development of the industry, like ensuring the development of state-owned coal mines and supporting township coal mines, etc.


The existing coal law was first launched in August 1996, and was revised three times afterwards. The current version came into force from November 2016.


(Writing by Alex Guo  Editing by Jessie Jia)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 China Jul thermal coal market: prices in reversed V shape 2020-08-07

Thermal coal prices rose in China in the first half of July backed by safety regulation and control on sales quota at mines, but headed south in the second half amid a slide in buying interest from we

2 China Jul coastal coal shipping market: freight rates up on demand 2020-08-07

China's coastal coal shipping market spiraled up in July, as some power plants maintained coal shipment from northern ports. Purchase was robust from power plants in Guangdong and Fujian

3 Chinese coking coal market still silent amid weak supply-demand fundamentals 2020-08-07

China's coking coal market extended the silence on August 7 citing abundant supply, poor demand and high stocks at both supply and demand sides. Coking coal stocks at mines surveyed by sx

4 China Coal Daily Track (Aug 7) 2020-08-07

Thermal coal Production area Coal delivery in Shaanxi province improved after the rain tapered off. Demand, especially for lumps, fared better, with some mines lifting prices by 5-20 yuan/t

5 Typhoon drives up thermal coal vessel freight despite waning demand 2020-08-07

Typhoon Hagupit, the fourth typhoon of this year, has brought heavy downpours and disrupted coal handling at Chinese ports, driving up shipping rates of thermal coal vessels, although downstream deman

6 Indonesian thermal coal outlook dims as tepid demand persists 2020-08-07

Outlook for Indonesian thermal coal market was clouded by persisting tepid demand from major importing countries, and recent deep output cuts are less likely to create a strong jolt in the short run.

7 Weekly China coal market news summary (Aug 3-Aug 7) 2020-08-07

China's Jul coal imports slump 20.63% on yr China's coal imports slumped 20.63% in July compared with the same month last year, as strict import restrictions continued to weigh ... &nbs

8 Weekly global coal market news summary (Aug 3-Aug 7) 2020-08-07

Global coal-fired power plants size first decreases in H1 The size of coal-fired power generation utilities decreased for the first time on record in the first half of 2020, with the closed

9 China's Jul natural gas imports fall 11.8% on mth, customs 2020-08-07

China imported 7.35 million tonnes of natural gas in July, falling 0.99 million or 11.8% from the preceding year, showed data from the General Administration of Customs on August 7. The i

10 China's Jul coal imports slump 20.63% on yr 2020-08-07

China's coal imports slumped 20.63% in July compared with the same month last year, as strict import restrictions continued to weigh down Chinese buying appetites, despite a large price advantage of o

Most Read Articles

1 Australian thermal coal price logs a 27% yearly drop despite similar demand shrink 2020-08-04

Australian high-ash thermal coal price was subject to a nearly 27% year-on-year decline, although the price was also in a 20-day downside starting from July 24 last year due to similar demand shrink,

2 Bayan Resources H1 coal output falls nearly 25% 2020-08-05

Bayan Resources, one major coal producer in Indonesia, registered a year-on-year slump of 24.4% in coal output to 12.1 million tonnes in the first half year. Its coal sales decreased 3.9%

3 Mongolian year-to-date coal exports plunge 46.4% on COVID-19, customs 2020-08-04

The year-to-date coal export from Mongolia totaled 11.26 million tonnes as of August 2, marking a year-on-year slump of 46.4%, according to Mongolian website IKON on August 3, citing Mongolian customs

4 Indonesia Aug coal HBA price hits fresh low 2020-08-06

The Indonesian government set its coal benchmark price (HBA) for August at $50.34/t, notching the lowest since January 2009, the Energy and Mineral Resources Ministry said in a statement on August 5.

5 China's H1 coal railway shipments down 6.8% on yr 2020-08-04

Coal shipments through the railway network across China totaled 1.12 billion tonnes in the first six months this year, down 6.8% from the same period in 2019, data from the National Development and Re

6 Russia Jan-Jul coal exports fall 4.83% 2020-08-05

Russia exported about 105 million tonnes of coal during the first seven months, falling 4.83% from 111 million tonnes a year ago, data showed from Energy Ministry of Russian Federation. C

7 Inner Mongolia's Wuhai to cancel night shift at coal mines 2020-08-05

Wuhai, in China's one of three largest coal bases of Inner Mongolia, started cancelling night shift at local mines, after more than four months of preliminary research and preparation work, according

8 China's Jul coal imports slump 20.63% on yr 2020-08-07

China's coal imports slumped 20.63% in July compared with the same month last year, as strict import restrictions continued to weigh down Chinese buying appetites, despite a large price advantage of o

9 Major N China coal provinces warn of geological hazards amid rainstorms 2020-08-06

With strong rainstorms moving northward to Shaanxi, Shanxi, Hebei, Henan and Shandong, major coal production hubs, local authorities repeatedly warned of flood and geological hazards in recent days.

10 China's spot thermal coal prices extend fall; bearish sentiment eased 2020-08-06

Spot thermal coal prices continued to decline for a fourth consecutive day on August 6 at northern transfer ports in China, as most buyers remained in a "wait-and-see" stance and showed limited buying