Coal Stocks Keep Falling After Regulators Push Shanxi Mines to Restart, Boost Output

Stock News10-20

Coal stocks continued their downward slide, with YANKUANG ENERGY (ASX: 01171) falling 5.00% to HK$10.63, SHOUGANG RES (ASX: 00639) dropping 4.74% to HK$2.615, CHINA COAL (ASX: 01898) down 4.34% to HK$9.92, and CHINA SHENHUA (ASX: 01088) slipping 2.30% to HK$41.56.

On the news front, on October 16, the National Development and Reform Commission, the National Energy Administration, and relevant departments held a meeting in Taiyuan, Shanxi, to accelerate the resumption of coal mine production and increase supply. The meeting required Shanxi Province to speed up the restart of suspended coal mines, maximize coal supply on the basis of ensuring safety, and promote the stable operation of the coal market.

Yangtze Securities believes that existing restarts may struggle to fill the supply gap. Given that downstream power plants can still tolerate current coal prices, and restocking demand continues to be released, coal prices are expected to remain strong at high levels in November and December. The current sector valuation reflects a coal price of about 850 yuan per ton, significantly below the current spot coal price, and the correction may present an opportunity for sector allocation.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment