According to Zhicheng Finance APP, coal stocks generally weakened. As of press time, SouthGobi (01878) fell 3.59%, reporting HKD 3.49; China Coal Energy (01898) fell 3.37%, reporting HKD 9.47 ; Yankuang Energy (01171) fell 3.09%, reporting HKD 17.56; Yancoal Aus (03668) fell 1.87%, reporting HKD 31.45.

On the news front, as of June 14th, the market price of Shanxi-produced Q5500 thermal coal at Qinhuangdao Port was 872.0 yuan/ton, down 3.0 yuan/ton from last week. Xinda Securities believes that coal prices are still fluctuating and the expectation for peak summer demand has not yet been realized. In mid-June, heavy rainfall in southern, southwestern, and eastern China was 3-7% higher than the same period in previous years, but the daily consumption of coastal power plants only marginally increased. As the peak summer season approaches, traders expect the market outlook to improve, and coupled with the continuous inversion of transportation costs, traders are still pushing up prices. The bank predicts that coal prices will remain volatile in the short term and may rise as the temperature in most coastal cities increases and terminal daily consumption rebounds from a low base.

Soochow Securities stated that the current trend in coal prices is weak, mainly due to demand being significantly lower than expected, weak manufacturing electricity demand due to sluggish exports, coupled with the La Niña climate affecting lower temperatures in southeastern parts of China, resulting in weak civil electricity demand, and ultimately leading to weak peak season demand. Both upstream and downstream ports and power plants in coastal areas have accumulated inventory, suppressing coal prices from rising. However, at the same time, due to the La Niña climate, there has been widespread high-temperature and drought weather in northern China, driving up demand for inland electricity. Although inland coal purchases do not go through ports, it indirectly supports the stability of port coal prices.