Abstract: Coal at present is still basic energy because of its huge reserve and low price,which consumption is the largest in our country.The price of coal has significant effect to the national economy.There are defects in the current coal price formation mechanism,which are the price mechanism is not sound,the price structure is not reasonable,the price proportion is not scientific,thus lead to negative impacts,which are resource utilization rate of coal industry is low,coal industry increases the country's fiscal burden,downstream industries exist serious waste and pollution,difficulty of the restructuring and transformation of the development pattern will increase,coal price volatility is not conducive to the smooth and healthy development of national economy.Based on the experience of the domestic and international coal price mechanism,some countermeasures and suggestions for reform of coal price mechanism in China are presented,which are market-oriented reform,full cost pricing,improving industry concentration ratio,reducing transportation cost,establishing futures market,establishing national system of coal reserve and so forth