Zhitong Financial APP learned that coal stocks continued their decline yesterday. As of press time, Yanzhou Mining Energy (01171) fell 4.99 per cent to HK $23.80; China Coal Energy (01898) fell 3.65 per cent to HK $6.86; China Shenhua Energy (01088) fell 2.99 per cent to HK $22.70; Shougang Resources (00639) fell 0.76 per cent to HK $2.60.

On the news, Qinhuangdao Coal Network said that the current coal demand recovery situation is unstable, the supply and demand pattern tends to loose situation has not changed, coupled with the winter supply and price stability is still the focus, the price rebound is not expected to be strong, and can not fully make up for the previous decline. In addition, the transactions in the coastal coal market are still dominated by medium-and long-term contracts, and the proportion of goods in the market is on the low side. Under the role of medium-and long-term contracts as a stabilizer, the possibility of sharp fluctuations in market prices is small.

Cofco futures pointed out that as the weather gets colder and the Spring Festival holiday is approaching, the market non-electricity demand in the next 1-2 months will not improve obviously and will not support prices very much. If the cold winter weather brought by La Nina does not occur in the next two months as expected, there may be room for coal prices to fall by about 100 yuan per ton.