According to a research report published by BOC International, the latest statistics show that China's raw coal production from January to February reached 537 million tons, an increase of 4.1% over the previous year. Coal imports in February were 20.55 million tons, three times that of the same period last year, with a 4.5% increase over the previous year. Downstream demand showed an upward trend in March, in line with the bank's previous expectations. The international thermal coal market is still weak. Domestic thermal coal prices ended their 17-week decline in March. Currently, the price of 5,500 kcal thermal coal in Qinhuangdao is 790 yuan per ton (RMB, same below), which is close to the price limit set by the government of 800 yuan per ton. According to BOC International, it maintains the coal industry's “leading” rating. The rebound in demand in the downstream sector has driven a rebound in coal prices. The bank remains optimistic about the growth in demand for coal in 2012. The bank said it will focus on recommending the Yanzhou coal industry, keeping its “buy” investment rating and target price of 31.4 yuan unchanged, with a potential increase of 88%. Maintain the “long-term purchase” investment rating of China Coal Energy (01898-HK) and the “neutral” investment rating of China Shenhua (01088-HK). At the same time, it maintained the “buy” investment rating of Hengding Industrial (01393-HK).