Paint raw materials: coal prices 6 years the lowest in Inner Mongolia part of the coal enterprises to reduce wages by 50%.

China Paint Network
: Zhu An has been a coal sales manager for 15 years, this year is the most difficult year.
2015, coal prices in Inner Mongolia fell further due to declining economic growth and overcapacity in the industry.
as a sales manager at a local state-owned coal mine in Ordos, Zhu analyzed the continued decline in coal prices. He said that the major ports, power plants are generally at a high level of inventory, energy demand further slowed, while the decline in production is not obvious, resulting in a rapid decline in coal prices.
a statistic from the Inner Mongolia Coal Bureau, the average pit price of thermal coal in Inner Mongolia was RMB142.12/tonne in April, down 0.38% quarter-on-quarter from the fourth quarter of 2014 and 9.22% year-on-year from the first quarter of 2014.
reporters found that most of the coal-carrying sections, such as the Ordos Baofu Highway, were empty. In some coal mines, which are still under construction, coal for sale piles up high, and the busy scene of coal shipments is gone.
said Inner Mongolia's coal industry is in crisis. Weak demand and a flood of cheap imported coal, caused by slowing economic growth, have led to falling coal prices in China, which have bankrupted many small and medium-sized coal mines, and some large and local coal mines have cut wages by an average of 50 per cent to prevent huge losses. Many coal workers leave coal mines to earn a living.
"Before 2014, my monthly salary could get about 8000 yuan, and now I can guarantee 4,000 yuan a month, " said Zhang Yan, who worked in underground coal mining machinery at a local coal mine in Ordos Darat, Inner Mongolia. Zhang said the average monthly income of many coal miners fell by more than 50 percent.
" coal sales difficulties, coal mines began to limit production, first-line workers' wages fell, while other ground workers' wages fell even more. Referring to the plight of the coal industry, Zhang added. Some of the coal mines that have been temporarily shut down only pay for the living expenses of their employees.
To this, Zhu said, because coal prices continue to fall, poor sales, some of the coal mines have just been integrated after the investment of some technical reform funds, there is no excess liquidity for re-production, some coal mines by borrowing or loans to pay wages.
Mr Zhang said he would consider moving to the ground and pay less if the slump in the coal industry continued to worsen.
" wages have been tightening from the beginning of the year to April. Zhang Yan said that the coal industry situation is grim, the mine also under the document strict requirements of production materials do not waste, from all aspects of production to control costs.
coal mines have been cut too much, leading to a large outflow of skilled workers. Zhu said that after some coal mines were shut down, workers flowed out and had to temporarily hire staff once they started work again. He analyzed that, at present, the coal industry has an unprecedented survival dilemma.
's claim was endorsed by Li Da, a coal trading analyst at Qinhuangdao Port.
coal prices in China have fallen to a six-year low, and coal mines in Inner Mongolia and other parts of the world are struggling with overcapacity, weak demand and shrinking bank lending, mr Li said. "If coal prices continue to fall, many coal companies will struggle to survive, and the industry as a whole may be able to consolidate in the future." Lida said.
the country's coal companies, the first to be affected are Inner Mongolia coal companies, many of which are far from coastal buyers, many of which are far from railways and ports and rely on higher-cost road transport. As soon as possible to open the coal export railway channel, has become an important way to digest the local coal production capacity.
fall in coal prices has prevented some coal companies from organizing normal production. Zhu said there were no exact official figures to confirm how many coal companies in Ordos, The main coal-producing region of Inner Mongolia, were closed or temporarily closed, but he estimated that about 10 percent of the local mines had closed. Today in Inner Mongolia, coal mines will lose 20 yuan to 30 yuan for every ton of coal produced.
" local coal mines have recently been made worse. At the end of April, Stahua Group introduced a new preferential coal supply program, and in May, the price of its mainstream coal varieties supplying power plants fell by 10 yuan to 15 yuan per ton from April.
JuAn believes that in the face of a limited number of procurement customers, coal production enterprises in order to seize market share, into a fierce competitive situation, and because of the huge pressure of capital turnover, coal producers have introduced promotional policies and optimize coal routes, in order to reduce costs.
" cost reduction, has become the local coal mining enterprises. Lida said.
" our enterprise has not signed a contract for a month, the recent coal mine shutdown in Inner Mongolia is also more. The upstream coal mines that the company cooperates with are also being discontinued, with no shipment at all. Chen Shigui, a coal distributor in Inner Mongolia, said that the number of small and medium-sized coal mines that have been shut down is increasing, overall production is decreasing and market demand is shrinking sharply.
, the State Energy Administration and the State Administration of Coal Mine Safety jointly issued a notice, clearly this year China plans to phase out the coal industry backward production capacity of 77.79 million tons, the elimination of 1254 coal mines.
, since 2013, the government has introduced a number of policies to support coal companies by cutting taxes and fees and reducing costs. But because of overall overcapacity, these cost-cutting policies eventually turned into more room for price cuts.
Li Da said that the cost of tons of coal after tax relief has dropped significantly, the average market of 1 ton of coal minus about 4 yuan, but the cost of reduction can not be offset by falling prices, in the short term will not help to change the coal industry's survival status quo. However, the current is the traditional demand off-season, after May with the arrival of summer, electricity companies will be prepared in advance of inventory, the coal market is expected to stop falling in mid-to-late May.
-related statistics show that the recent decline in downstream power plant coal stocks, coal procurement increase, is expected to make the coal market a short-term slight correction, coal prices are expected to continue to run low for a period of time, prices may not stop falling after Entering June.