Currently, the economic performance of China’s coal industry is being affected by a combination of factors, including slowing market demand, difficulties in digesting excess capacity, increasing challenges in controlling total coal production, and declining international energy prices. To overcome the dilemma of “producing more coal doesn’t yield profits, while producing less means losing market share,” and to maintain supply-demand balance in the coal market and promote the industry’s sustained, healthy development, we need, on the one hand, to phase out outdated production capacities and accelerate structural adjustments within the industry; and on the other hand, to regulate market order, genuinely ease the burden on enterprises, and strengthen financial institutions’ support for businesses.

　　As midsummer approaches, the coal industry still hasn't shaken off its "chill." At the recently held... 2015 At the press conference for the annual corporate social responsibility report of the coal industry, Liang Jia Kun, Vice President and Secretary-General of the China National Coal Association, stated that China’s coal economy is still hovering at a low level, a situation that will be difficult to change in the short term, making the task of helping the industry out of its current predicament an arduous one.

　　From the “golden decade” when mining coal could bring in profits, to today’s reality—“the more coal you mine, the less profit you make; the less coal you mine, the more market share you lose”—the coal industry has undergone a trial of “both ice and fire.” Currently, against the backdrop of a growing trend toward reduced consumption and declining international energy prices, whether it’s phasing out outdated production capacity, promoting industrial restructuring, regulating market order, effectively easing the burden on enterprises, or stepping up financial institutions’ support for businesses, breaking the coal industry’s “dilemma” still requires concerted efforts from all parties.

2012 Year 5 Since the beginning of the month, the national coal market has been continuously... 35 The price has been fluctuating downward over the past few months. On the one hand, there is overcapacity and insufficient demand, leading to persistently high inventory levels across society. On the other hand, coal prices continue to fall, making it increasingly difficult for enterprises to operate profitably.

　　To help the coal industry quickly overcome its difficulties, since the second half of last year, relevant authorities and local governments have implemented the decisions and arrangements made by the State Council and adopted a series of measures aimed at helping the coal industry break free from its predicament, achieving phased results.

　　According to Wang Xianzheng, President of the China National Coal Industry Association, by... 2014 In the fourth quarter of the year, the rapid growth in national coal production was brought under control, coal imports declined, and market prices saw a slight rebound. Meanwhile, reforms to the resource tax and efforts to eliminate unreasonable charges continued to advance steadily, leading to positive changes in the coal industry’s economic performance.

　　“The coal industry’s situation improved somewhat in the fourth quarter of last year, largely thanks to supportive policies. It was precisely the effect of a series of policy measures—such as ‘capping production capacity, tightening imports, controlling output, and reducing burdens’—that gave the coal industry a sense of having reached a bottom. However, until a number of internal issues within the coal industry itself are resolved, we can’t yet say that the industry has successfully bottomed out,” Yue Fubin, director of the China Coal Economic Research Institute, told a reporter from the Economic Daily.

　　Enter 2015 This year, affected by factors such as a slowdown in market demand and the continued decline in crude oil prices, coal market prices have once again experienced a sustained drop, while inventory levels remain stubbornly high, further exacerbating the operational difficulties faced by enterprises. Data shows that in the first part of this year... 4 For the month, national coal production declined year-on-year. 6.5% However, coal inventories across the entire society have been steadily increasing. 40 More than a month 3 100 million tons, Qinhuangdao 5500 The price of high-calorie动力 coal has risen from the beginning of the year. 520 Yuan / ton to decrease to 5 At the beginning of the month 421 Yuan / ton; as of 3 At the end of the month, accounts receivable of coal enterprises. 3551 Hundred million yuan—problems related to tight funding chains are particularly prominent.

The monitoring results of the China Economic Coal Industry Prosperity Index show that in the first quarter of this year, the index reached a new high. 2011 Year 11 The new low formed after the monthly downward turning point is lower than the fourth quarter of last year. 0.4 percentage points; the early-warning index breaks through 10 The sideways movement this quarter is down compared to the fourth quarter of last year. 3.7 percentage point.

　　Overall, China's coal industry is currently experiencing a sustained downturn in economic performance, primarily due to the combined impact of factors such as slowing market demand, difficulties in digesting excess capacity, increasing challenges in controlling total coal output, and declining international energy prices.

　　From a macro perspective, as China’s economy enters a “new normal,” shifting from high-speed to medium-high-speed economic growth, the nation’s demand for coal has somewhat declined. According to estimates, in the first two months of this year, national coal consumption totaled approximately... 6 100 million tons, down year-on-year 2.2% Among them, the power industry consumes coal. 3.3 Hundred million tons, down 5.6% ; The steel industry consumes coal. 1.05 Hundred million tons, down 0.9% 。3 The average daily coal consumption of key power generation enterprises declined year-on-year for the month. 15.8% 。

　　From the perspective of energy structure, clean energy and non-fossil energy are playing an increasingly prominent role in substitution. 2014 In that year, the share of clean energy consumption—such as hydropower, wind power, nuclear power, and natural gas—in total energy consumption was... 2013 of the year 15.6% Upgrade to 2014 of the year 16.9% . This year's first 2 For the month, apparent natural gas consumption increased year-on-year. 7.5% Hydropower, nuclear power, and wind power generation increased respectively. 12.7% 、31% and 22% However, thermal power generation declined year-on-year. 0.8% 。

　　From the perspective of the coal market itself, due to the rapid expansion of coal production capacity during the “Golden Decade,” pressure from overcapacity has intensified. Data shows that... 2006 Since the year, the cumulative fixed-asset investment in the coal mining and beneficiation industry has... 3.27 Trillion yuan, 8 The cumulative newly added production capacity over the years has reached 30 Hundred million tons. Currently, the nation's coal mine production capacity exceeds... 40 Hundred million tons , Under construction capacity in 10 Around 100 million tons.

　　Moreover, in some regions and among coal enterprises, issues such as illegal and non-compliant construction of production facilities and overcapacity production have become particularly prominent. Enterprises are competing fiercely to cut prices and boost sales through “quantity-for-price” strategies, vying for market share and further intensifying the pressure of overcapacity. Meanwhile, some coal users, in an effort to reduce costs and enhance profitability, are driving down coal procurement prices via tendering processes, altering coal delivery methods and payment settlement terms, or delaying payments and increasing the proportion of accepted bills of exchange—thus making competition in the coal market even more intense.

To help the coal industry overcome its difficulties, at a meeting held not long ago... 2015 At the annual teleconference on overcoming difficulties in the coal industry and regulating economic operations, the National Development and Reform Commission urged relevant departments and enterprises in the industry to strictly address illegal and non-compliant coal mine construction and production, rigorously tackle overcapacity production, firmly combat unsafe production practices, and strictly control the production, import, and use of low-quality coal.

　　Liang Jiakun stated that during the current downturn in the coal economy, coal enterprises—especially large-scale ones—should, from the perspective of maintaining the balance between supply and demand in the coal market and promoting the industry’s sustained and healthy development, proactively control overall output, stabilize coal prices, ensure safety, and uphold stability. They should strictly organize production in accordance with the publicly announced production capacities of coal mines and their committed obligations, ensuring compliance with laws and regulations, avoiding overcapacity production, and refraining from producing under unsafe conditions. By doing so, they can help maintain the balance between supply and demand in the market and improve the quality of economic operations.

　　In response to the current urgent need to accelerate “capacity reduction” in the coal industry, Wang Xianzheng suggested speeding up the establishment and improvement of a mechanism for phasing out coal mines, with a particular focus on addressing the legacy issues left over from previously policy-driven bankrupt coal mines. He also emphasized the need to conduct thorough research into coal mine exit mechanisms and supporting policy measures, clearly defining the basic conditions for closing down or declaring bankruptcy of coal mines as well as the scope of national support. This would facilitate the orderly exit of state-owned coal mines that have exhausted their resources, suffer from severe disasters, are unable to turn a profit, or have poor coal quality, thereby eliminating outdated production capacity, optimizing the layout of coal development, promoting structural adjustments in the coal sector, and enhancing production concentration.

　　He also suggested that we should accelerate the separation of social functions previously handled by enterprises, reduce taxes and fees levied on coal enterprises, and effectively ease their financial burdens. Furthermore, we should step up financial institutions’ support for coal enterprises, ensuring the smooth operation of their capital chains and promoting their sustainable development. Additionally, we should strengthen enterprises’ sense of self-discipline, focusing on controlling overall output and stabilizing prices, preventing price cuts and promotions that could trigger vicious competition, and striving to promote the steady operation of the coal economy.