The Zhitong Finance App learned that coal stocks generally fell in early trading. As of press release, Yankuang Energy (01171) fell 3.62% to HK$17.02; China Coal Energy (01898) fell 2.64% to HK$7.39; Shougang Resources (00639) fell 2.05% to HK$2.86; and China Shenhua (01088) was 1.31% to HK$30.1.
Guotai Junan pointed out that in the short term, the supply-side production of thermal coal may resume faster than the recovery rate of non-electricity demand. It is expected that this round of price decline may bottom out around mid-April. In terms of coking coal, in a context where demand for steel is still falling, prices are still expected to drop in the 7th round or even the 8th round of price cuts, but considering the current situation where coke companies have overall losses and an operating rate of less than 50%, the price is expected to be close to the bottom of the market.
Capital Securities released a research report saying that as the weather warms up and the heating season ends in most parts of the north, the obvious contraction of coal for heating will put a lot of pressure on short-term coal demand. Off-season coal demand lacks stronger support, and short-term prices are expected to continue to be pressured. However, a sharp drop in coal prices is unlikely.