Posted on April 22,$Coal (BK1044.HK)$The sector has collectively declined. As of press release,$SOUTHGOBI (01878.HK)$decreased by 7.89% to HK$5.37;$MONGOL MINING (00975.HK)$decreased by 6.77% to HK$9.36;$CHINA COAL (01898.HK)$It fell 6.18% to HK$7.89.

According to the news, according to the National Bureau of Statistics, in March 2024, the country's regulated industrial raw coal production was 399 million tons, down 4.2% from the previous year. The growth rate was basically the same as in January-February 2024, with an average daily output of 12.88 million tons. From January to March 2024, the country's regulated industrial raw coal production was 1.11 billion tons, down 4.1% year on year. By province, in March 2024, Shanxi, Inner Mongolia, and Shaanxi saw year-on-year increases of -21%, 6.1%, and -1.7%, respectively. It is worth noting that the year-on-year decline in raw coal production in Shanxi Province in March hit a new low since August 2016, with a cumulative year-on-year decline of -18.9% in January-March.

Huatai Securities released a research report at the beginning of this month, saying that 2Q is the traditional low demand season for the coal industry until the peak summer season, and the downward pressure on coal prices may continue until 2Q24. The bank pointed out that off-season demand from April to June will test coal price support, and coal companies with high medium- to long-term contracts will be more stable, but the performance of companies with a relatively high share of spot sales will be pressured to decline year on year.