[institutional Review] Coal prices fall rapidly after effective price control in the coal industry

The state strictly controls coal prices, and the National Development and Reform Commission studies and defines the judgment criteria for coal enterprises to bid up prices and make exorbitant profits. Recently, the spot prices of coal price futures have dropped significantly, and coal stocks have increased, which is conducive to the decline in the cost of downstream electric power enterprises, and profit growth may recover to some extent. As for the high energy-consuming industry, it still faces the double pressure of double control of energy consumption and rising electricity price. In the long run, the coal price may be limited to fluctuate within a certain range, and then stabilize the electricity price, stabilize the price environment of enterprise operation, which is conducive to the healthy development of the economy. It is estimated that PPI will gradually fall back.

The "opinions on the complete, accurate and comprehensive implementation of the new development concept to do a good job of carbon neutralization" and the "carbon peak action plan before 2030" have been issued, and the "1" of the dual-carbon "1n" policy has landed, and the follow-up "N" policy will also be introduced step by step. The relatively limited supply side of some industries is estimated to be a medium-and long-term trend, which is generally good for clean energy such as photovoltaic, wind power, hydropower and so on.

The Fed's November interest rate meeting is expected to announce the opening of Taper, which is expected to end in the middle of next year. Taper has been expected by the market, is expected to have a certain impact on market sentiment, but the impact will not be too great. In terms of the impact on liquidity, overnight reverse repurchase and reserves have become the Fed's reservoir, and the recovery of spillover liquidity will not have much impact on global markets. The focus for the future is when the Fed will start raising interest rates.

Recently, the epidemic situation in scattered sites has been repeated, and the movement of people in some areas has been restricted to a certain extent, which has a negative impact on travel-related industries to a certain extent.