According to the intelligent financial APP, coal industry stocks are generally falling. As of press time, Nan Nan Res (01229) fell 7.36% to HKD 0.151; China Shenhua Energy (01088) fell 3.52% to HKD 35.9; Shougang Res (00639) fell 2.88% to HKD 3.03; China Coal Energy (01898) fell 1.41% to HKD 9.09.

On the news front, according to Mysteel, the current increase in production area supply is limited, and coal prices are relatively strong, supporting the cost of coal to the port. However, the high inventory of end power plants continues to suppress the market, and under the stable supply of long-term and imported coal, overall terminal purchasing demand continues to be weak. At the same time, the volume of non-electric terminal purchases is small, and the end of the peak season is approaching, with limited demand release. The realization of the peak summer is still to come. In addition, the downward trend of prices caused by the external procurement of main coal enterprises yesterday is expected to continue to be weak in the short term.

Everbright Securities pointed out that the recent continuous precipitation has affected the expectation of peak season coal prices. If subsequent precipitation decreases, coal prices are still expected to strengthen seasonally. Zhongtai Securities stated that in the future, thermal coal prices will still show a high-level oscillating trend and there is no basis for a substantial decline, mainly due to 1) the daily consumption of power plants is still in the process of climbing and demand improvement is still continuing. 2) favorable railway policies may expire, and the expected inverted coal prices in production areas and ports will intensify.