Inner Mongolia Coal Futures Market Construction

Thermal coal is one of China’s important energy in the production process, and its reserves accounted for75.83%of total coal reserves,which makes up great parts of the coal in china. In2012, China imported101million tons of thermal coal, with an increase of83.8%.As the slowdown in the macroeconomic growth, cancellation of the dual pricing and other factors, domestic thermal coal price become more volatile, which has impact on economics and brings a threat to the development of China’s coal industry, especially a great challenge on safety of large-scale coal region. Inner Mongolia is an important supply base of thermal coal, the fluctuations of price has-had impact on the Inner Mongolia region in recent years. In order to avoid the risk of price,which the chain of coal encounters, it is necessary to establish a thermal coal futures.These conditions,which contains a relatively complete coal market, thermal coal which is part of futures, many traders and so on,are necessary to establish a thermal coal futures in Inner Mongolia.Firstly, this paper analysis the environment of thermal coal market, and discuss external environment, which establishing a thermal coal futures market we encounters in Inner Mongolia. Then, the paper discuss the feasibility to build coal futures market from the perspective of SWOT.The paper conclude advantage, disadvantage, opportunity, challenge by the means of establishing a thermal coal futures market in Inner Mongolia and makes a assumption which is about how to establishing a thermal coal futures market. Finally,the paper comes to conclusion, puts forward the suggestion.