Oct 19, 2021 07:40 AM (GMT+8) · EqualOcean
The market is worried that guaranteed supply will suppress coal prices and corporate profits. Guotai Junan said that guaranteed supply will help corporate profits rise and improve the sustainability of high profits. 1) For the part of increasing production, it will basically be carried out in the mode of long-term association price. Although the long-term association price is significantly lower than the spot price, it is mostly incremental, which will promote the simultaneous rise of enterprise volume and price. 2) After the completion of the supply guarantee task, the willingness of the policy to suppress the spot coal price will be greatly reduced. Due to the smooth transmission of the price and cost of coal chemical products, the spot coal price will still be greatly increased, and the profits of coal enterprises with market-oriented sales will be more flexible.

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