The report said that the National Development and Reform Commission of China had arranged to meet with several major domestic coal production companies to require them to properly control the rise in coal prices. The report pointed out that the National Development and Reform Commission does not intend to introduce price controls yet, but if coal prices continue to rise, it does not rule out the possibility of price intervention.
Goldman Sachs believes that this news is not news. At the end of 2010, the National Development and Reform Commission limited the price increase of major coal contracts in 2011, leading to a significant weakening of Chinese coal sector stocks in the first quarter.
It needs to be emphasized that the price limit applies only to the sale of large-scale coal contracts between China's largest state-owned coal mining companies and major power plants in order to ease the impact of rising coal prices on inflation. In 2011, the coal sales volume for this type of contract was approximately 380 million tons, while the total coal market transaction volume reached 3.5 billion tons.
Goldman Sachs believes it is very difficult to implement price controls in the coal spot market. First of all, the coal market is still a highly decentralized market, which includes more than 20,000 manufacturing companies and tens of thousands of traders. Second, coal products and prices are divided into many different types and grades in order to effectively implement prices in the spot market. It is almost impossible to regulate or monitor prices.
Goldman Sachs believes that the market is overreacting to the effect that price limit may have on profits, which is mainly due to the confusion of large-scale coal contract sales and spot market sales.
Taking into account the continuing power shortage, the shortage of access to the summer may further intensify, Goldman Sachs believes that there is room for further increase in the price of Chinese spot trading hot coal.
Goldman Sachs believes that the current price of Yanzhou Coal is the most appropriate. The company has the highest spot sales ratio (approximately 70% of domestic sales), and therefore it is the least vulnerable to price limits, and it benefits most from spot coal price increases. Therefore, Yanzhou Coal is the preferred stock of Goldman Sachs in China's three major coal producers. Goldman Sachs reiterated its rating on the stock and its target price.
A self-contained, portable liquid chemical supply tank storage and transfer unit includes an external support shell having upper and lower support shell sections concentrically joined to one another. The upper support shell section includes diametrically opposed upright arms which define therebetween a generally U-shaped space in which the transfer system is positioned. The lower support shell section houses a liquid chemical storage tank. The transfer system includes a metering canister fluid-connected to the liquid chemical within the storage tank, a selector valve assembly and a pump (preferably a manually-actuated hand pump). Operation of the pump will allow liquid chemical to be drawn from the storage tank and into the canister. The liquid chemical in the metering canister may then be transferred (e.g., via gravity or another pump) to another tank, for example, a mixing tank associated with an agricultural spray implement.
Chlorine Dioxide for Algae Removal, Chlorine Dioxide for Removing Odor, Chlorine Dioxide for Air Disinfection, Chlorine Dioxide for Paper Bleach
Nanjing Ligong Shuifu Environmental Protection Technology Co.,Ltd. , http://www.watermanclo2.com