Last week, the National Development and Reform Commission has decided to conventional coal orders will be canceled since 2013. This means that starting next year will be canceled coal key contract, the implementation of the price of coal merged, the price of coal will be fully market-oriented. Then for coal as the main raw material, but it is also a major electricity consumers Chinese urea industry, this reform will generate its impact?

Prior to countries every year organized the coal orders will be entered into a supply contract. 2002 National announced that it would no longer publish the the coal guide price, coal-fired electricity two sides through coal ordering fairs consultation to determine the price of coal. But in the annual coal ordering meeting, the government will publish a reference coordinate price, the price is generally lower than the market price of coal led to coal-fired electricity transactions.

The unification of coal and power prices, the the coal focus on contract will be medium-and long-term contracts to replace long-term contracts are determined by the coal companies consultations, the government will no longer set the front base price, medium-and long-term duration of the contract is 2 years. The coal industry no longer exists key coal, the only market for coal, which in turn will promote the formation of coal linkage mechanism.

The coal completely market-oriented, the impact on the domestic urea industry is positive or negative?

Reporters interviewed on this issue Jiangsu Huachang Chemical Co., Ltd. Deputy General Manager Zhang Hanqing, he believes that the short term impact of this reform on the urea industry.

"All along, the coal enterprises in the power generation companies implement certain preferential policies, but the fertilizer business does not get this kind of deals. Fully liberalized coal prices, fair competition in the market can be achieved, to a certain extent, is conducive to a stable coal prices, which urea industry is favorable. "he analyzed.

As for the coal orders will be canceled, whether caused electricity price fluctuations thereby affecting the cost of urea, Zhang Hanqing said: "The large economic and environmental impact, the domestic demand for electricity is slowing down, coupled with new energy alternative, as coal major consumer groups, this year, generating enterprises operating rate is on the decline, demand for coal is also slowing at the same time, the coal industry in recent years, pre-new production capacity is gradually released since the beginning of the year, the market price of coal plunged series even with the key contract coal prices comparable to coal power industry at this time ushered in a turning point, power generation companies in a favorable position, so reforms and will not cause a rise in electricity prices. "