The characteristics of China's coal market

The market is a form of economic contact with the exchange of goods. For producers or businesses of goods, the market refers to the sum of the demand for a certain commodity or a certain type of commodity. The demand for goods is reflected by the buyer, so it can also be said that the market is a group of all buyers and potential buyers of a certain product. It is a carrier of coal commodities and a place for the exchange of coal commodities.

For coal-operating companies, the coal market is broad and narrow. The generalized coal market refers to the existence of any form of economic contact for coal exchange. It includes not only tangible, visible coal exchange sites, but also intangible exchange sites, unfixed sites, including transportation, supply and marketing. The narrowly defined coal market mainly refers to coal exchange sites, such as fuel companies, coal construction companies, coal transportation companies, coal trading markets, coal orders, and port trading markets, and other visible trading venues and locations.

Since China has long implemented a planned economy, the coal market under the conditions of commodity economy does not exist. Since China’s establishment of a socialist market economy and reform of the current coal circulation system in accordance with economic laws, economic regions, and reasonable flows, this has led to the cultivation of several coal trading markets nationwide, in order to further establish and improve the state’s guidance. The foundation for an efficient and unified coal market system has been laid.

The current national coal ordering meeting is essentially a transitional period for the coal market in the sense of commodity economy. The future development will inevitably adapt to the development requirements of the socialist market economy, establish normal market entry, market competition and market transaction order. To fair and equal transactions, protect the legitimate interests of coal mines, users, and the transportation industry, and gradually establish a contractual contract system. This is also the only way to the transition to the coal market.

The significance of the coal market has gradually emerged with the development of the coal trading market, and it mainly has the following significance:

1. The coal market has a guiding price. The monthly trading volume in the coal market is generally relatively large. There are two types of transactions: negotiation and bidding. The transaction price is also high or low. No statistical comparison and analysis are made before the establishment of the coal market. After the market is established, these prices are grasped, and weekly prices are The top, lowest and average prices of coal transactions were released once. So that coal operators understand the changes in the coal market and guide their operations and decision-making.

2. The coal market can provide various trading services. There are mainly: First, the signing of the standard contract. The coal market provides both parties with a contract for the transaction. At the same time as the contract is signed, the transaction will both pay the trading margin to the market. This can effectively avoid default by both parties and, to a certain extent, can better avoid the formation of "triangular debt." The second is that the coal market can act as an agent for all operational procedures, including on behalf of the buyer, on behalf of the buyer, on behalf of the transport, on behalf of the storage, on behalf of access to goods, on behalf of transit and so on. What is more, it is a matchmaking and a crossover. There are many members in the coal market (such as the 118 members in the Qinhuangdao Coal Trading Market). There are a lot of buying and selling intentions every week, and there are a large number of non-member companies offering business intentions. The coal market can use these intents to build bridges and synthesize funds.

3. The coal market can timely receive and feed back coal business developments. The coal market has many member units, including the three major aspects of coal production, operation, and use. The business activities of these units can reflect sensitively the effects of national policies and transportation conditions on coal operations and reflect the micro-level changes in the coal market. Then the coal market will provide these dynamics to all units in a timely manner so that the company can change its business concept in time to fully adapt to market changes.

4. Coal market transactions can avoid some disadvantages of unequal competition and private transactions. The coal market is a place for centralized trading of coal. It regards “fair, open, and fair” as the transaction principle and follows the transaction policy of “quality first, price first”. With quality arguments, open competition, and high bids for those who bid, they can effectively curb unfair competition and unethical practices in some private transactions.

5. The coal market can provide information services. In order to provide good information services to the society, the coal market has set up an information department and advanced information networking and communications equipment. It can not only timely feed back information generated by the coal market, but also timely, truly and effectively publish relevant information related to coal-related national policies, ports, railways, etc. This is unmatched by any business unit.