According to the Wisdom Finance app, coal stocks continue to decline. As of press time, Mongolian Mining Group (00975) fell 10.71% to HKD 9; SouthGobi (01878) fell 9.71% to HKD 3.16; Yancoal Australia (03668) fell 5.34% to HKD 34.6; China Shenhua Energy (01088) fell 3.82% to HKD 32.7; Shougang Res (00639) fell 3.06% to HKD 2.85.

Recently, many coal companies have released their semi-annual performance forecasts. In the first half of this year, the losses of coal companies have further expanded. Wind data shows that among the 33 constituent stocks covered by the coal index, 21 coal companies have already released financial results, and their profits have collectively declined. In the first half of the year, there were 11 coal companies that were able to maintain profitability, while the number of loss-making companies reached 10, accounting for nearly half. According to Fitch Bohua statistics, as of July 15, 2024, except for Wintime Energy's counter-trend growth and China Shenhua Energy's smaller decline, the net income of other entities in the coal industry forecasted a severe decline, with a (upper limit) YoY growth rate closer to the waist cut.

According to Coal Resource Network, the average price of Qinhuangdao Q5500 thermal coal in January to June 2024 was CNY 874.88/ton, down 14.29% YoY. The coal mines in the main producing areas of Shanxi, Shaanxi, and Inner Mongolia have experienced more obvious declines, with average prices in the first half of the year down 20%-30% YoY. In addition, from January to June, the cumulative output of raw coal in China was 2.266 billion tons, down 1.72% YoY. Shanxi Securities recently pointed out that it is difficult for the supply and demand of coal to further loosen in the second half of 2024. With the arrival of peak summer season, it is expected that there is little room for further decline in domestic coal prices.