Coal Stocks Mostly Advance as Port Prices Rise and Geopolitical Tensions Support Energy Substitution Thesis

Most coal stocks traded higher. At the time of writing, YANCOAL AUS (03668) rose 3.71% to HK$38.54; CHINA COAL (01898) gained 3.43% to HK$13.28; YANKUANG ENERGY (01171) increased 3.18% to HK$14.60; and CHINA SHENHUA (01088) climbed 2.66% to HK$46.38.

On the news front, as of April 17, the Q5500 thermal coal price at Qinhuangdao Port was 769 yuan per ton, up 8 yuan per ton week-on-week. Additionally, Shanxi Securities noted that while high uncertainty in U.S.-Iran conflicts corresponds to elevated volatility, oil prices are unlikely to decline significantly in the short term. The brokerage indicated that with confirmation of recovery signals and the imminent turnaround in coal PPI, coal prices are expected to rise, potentially leading to a double boost for coal stocks.

Huafu Securities added that frequent geopolitical incidents globally are reinforcing nations' willingness to control energy and resource supplies, while also increasing the incentive to build inventories as a buffer against uncertainty. Price increases for resources, including coal, may already represent a prevailing trend.