For a long time, coal occupies a large proportion in China's primary energy consumption structure, the problems in formation of coal price result in a drastic fluctuation of coal price in recent years. Since the second half of 2006, China has adopted a series of coal price marketization reform measures, but with little success. The fundamental reason is that the coal price forming mechanism is unreasonable, mainly in the unsound mechanism of coal supply and demand, unreasonable coal prices and incomplete price forming mechanism. Therefore, we should construct a reasonable coal price forming mechanism on the basis of clear objectives and principles of reforming and improving the coal price forming mechanism, so as to promote the development of the domestic coal market.
