Approach the pricing mechanism of power coal from going up of power coal price

Since 2002, government lifted the control over the guiding price of power coal. Thanks to the unperfect market system of power coal, disputes on power coal price often occurred, finally government had to forcibly interfere in. This paper approaches the forming mechanism of power coal price from economics aspect, analyzes the price of power coal formed under the circumstance of government regulation and market competition, indicates that system factor leads to the insufficient market competition of power coal, the contradiction between power and coal industry can be settled, only when the market is fully operated.