A number of coal policies have made it possible for coal prices to rise in the winter.

On November 20th, the “Securities Daily” reporter was informed that in order to promote the efficient and orderly implementation of the medium and long-term contract signing of coal in 2018 and ensure the stable supply of coal, the “2018 National Coal Trading Fair” hosted by China Coal Industry Association will be 11 Held from the 21st to the 23rd. During the fair, some enterprises will be organized to sign the 2018 coal medium and long-term contract and hold a signing ceremony. In 2018, the annual coal-coal long-term contract negotiations started soon. An analyst of Shenwan Hongyuan said that in order to prevent abnormal fluctuations in the coal price during the peak season, the National Development and Reform Commission recently conducted a coal price market inspection, which is intended to suppress coal prices. At the beginning of the current 2018 annual coal-electricity long-term contract negotiations, coal prices are difficult to rise, and it is expected that the proportion of long-term contract coal trading will increase. Bi Fangjing, a coal analyst at Jinlian Chuang, said in an interview with Securities Daily yesterday that it is expected that the benchmark price of Changxie Coal will remain unchanged in 2017, and the number of contracts for 2018 will reach more than 75%. Under the protection of the increase in the proportion of long coal, the impact of the off-season peak season on the downstream enterprises will be smaller. Bi Fangjing said that the 2018 mid- and long-term contract performance rate should be no less than 90%. And the relevant departments will support the enterprises to sign contracts on their own, and encourage both the supply and demand sides to directly purchase direct sales. In signing medium and long-term contracts, encourage both coal supply and demand sides to sign direct purchase direct sales contracts, reduce intermediate links and reduce transaction costs. According to the monitoring data, on November 17, the China Coal Price Index (National Composite Index) was 156.2, down 1.5 points from the previous period, down 3.3 points from the beginning of the year and down 6.2 points year-on-year. An analyst at Yimei Information said that since the end of September, the state has imposed a series of "pressures" on rising coal prices. First, in September, the National Development and Reform Commission issued the "Notice on Doing a Good Job in Coal-Electricity Oil and Gas Transportation Guarantee" and the "Notice on Further Improving Coal Supply Guarantee Work in Winter and Winter", and the production capacity was gradually released and the capacity was enhanced. With the release of the policy, before and after the National Day, key coal companies announced price cuts, laying the foundation for the stability of coal prices in the later period. Second, the state guides expectations through price inspections and other regulatory measures, and severely cracks down on price hikes to prevent abnormal fluctuations in coal prices. This makes it impossible to raise the price of coal in this winter. Third, at the end of November, the 2018 coal trade long association contract pricing is imminent, and the intention of policy guidance to reduce and stabilize coal prices is obvious.

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