Research On China’s Coal Price Formation Mechanism And Coal Price Effect Factors

China is a country of abundant coal resources. Coal has been the country’s mainenergy for a long time, dominates the country’s primary energy consumption structure,and the pattern is difficult to change in a short time. China’s coal industry developedrapidly in the past decade, known as the "golden years" of coal. In this decade, coalprices rise steadily until May2012, from that time prices began to decline. Because ofChina’s coal industry is the upstream industry of the national economy, so fluctuationsin coal prices involves a wide range of influence. Not only directly affect the supplyof coal enterprises, but also affect the relevant downstream industries’ costs and prices,and therefore affect our prices, investment, consumption, import and export, andultimately will affect our economy. Therefore, the study of coal prices and priceformation mechanism is of great significance.This article first briefly describes the coal, the coal resources in China, and thecurrent situation of coal industry. The dominant position of coal resources in China’senergy consumption is unshakable.Then comb the evolution of coal price formation mechanism since the foundingof China. Coal price mechanism in China can be roughly divided into three stages:fully planned price period, the price adjustment period and market period. After studythe trend of coal prices during the market period, identify the relevant factors thataffect the price of coal.After the description of these factors, use model to analyze the relationshipsbetween these factors and the coal prices. Data for this study is the monthly andquarterly data during2006-2013. As the time series data, the model used include: unitroot test, E-G two-step cointegration, Granger causality test and regression testing.The main conclusions: the marketization of Chinese coal market is incomplete,supply and demand can not fully reflect the price change; internationalcompetitiveness of the domestic coal market is insufficient, has no discursive powerin the international coal market; fluctuations in coal prices would ultimately affect thenational economy. And put forward some relevant proposals.