According to the Wise News app, coal stocks collectively rebounded. As of press time, Yancoal Aus (03668) rose 3.51% to HKD 33.95; Mongol Mining (00975) rose 3.34% to HKD 8.96; China Shenhua Energy (01088) rose 3.27% to HKD 36.3; Shougang Res (00639) rose 2.61% to HKD 3.14.

On the news front, according to the China Coal Market website, the coal market has maintained a weak trend recently. As of June 27th, the daily reference price for CCTD Bohai Rim thermal coal spot prices for the 5500K, 5000K, and 4500K three specifications decreased by 4, 5, and 7 yuan/ton respectively compared to the previous day. However, with July 15th officially entering the summer heat, the purchasing enthusiasm of power plants may gradually increase. At the same time, the 20th Third Plenary Session is expected to release positive signals for the economy, stimulating the demand for electricity and coal consumption. Meanwhile, the supply of coal at the production site is unlikely to increase during the peak season. Therefore, the market coal price may have the possibility to stop falling and rise.

Huafu Securities pointed out that in the short term, thermal coal faces unfavorable situations such as high inventory, high imports, and southern rains, while downstream of coking coal enters the traditional off-season for consumption, and coal prices are under pressure in stages. However, the bank believes that the expected summer peak electricity consumption is still there, and thermal coal will usher the peak season, although late. It is suggested to focus on companies with high stability of performance such as high-long agreement, continuous high cash flow, and benefit from the expected valuation repair of central enterprises.