According to the Wisdom Finance and Economics App, coal stocks continue to decline. As of press time, Southgobi (01878) fell by 6.33% to HKD 2.96; Shougang Resources (00639) fell by 3.42% to HKD 3.11; China Coal Energy (01898) fell by 3.33% to HKD 9.29; Mongolia Energy (00276) fell by 3.26% to HKD 0.89.

On the news front, during the week of June 17 to June 21, port thermal coal spot prices fell by RMB 3/tonne compared to the previous week, to close at RMB 868/tonne. Soochow Securities believes that the current trend of coal prices is weak, mainly due to demand being significantly lower than expected, sluggish exports resulting in weak manufacturing electricity demand, combined with the La Niña climate affecting the temperature in the Southeast region, causing weak civilian electricity demand. This ultimately leads to weak demand in peak season. Both upstream and downstream power plants in coastal areas have seen stockpiling, suppressing coal price increases.

In addition, according to statistics from the National Bureau of Statistics, the output of raw coal from large-scale industries in May was 380 million tonnes, a year-on-year decrease of 0.8%, a decrease rate narrowing by 2.1 percentage points compared to April; the daily output was 12.382 million tonnes. Haitong International pointed out that from the supply side, although the year-on-year decline in output in May has further narrowed, and the monthly output has increased, the daily output in May was 12.38 million tonnes, a month-on-month decrease of 0.008 million tonnes and a year-on-year decrease of 0.048 million tonnes. The recovery of output is still not ideal.