运输瓶颈：运输环节的限制也影响了煤炭的及时供应，进一步推高了价格。The cost-effectiveness of dividend asset allocation is once again highlighted, and Institutions are Bullish on the current layout window period.
With the arrival of winter, the demand for Coal has significantly increased, especially for Thermal Coal used for heating.
Production reduction due to coal mine safety inspections: Safety inspections in coal mines in Shaanxi and other regions have caused some mines to halt or reduce production, resulting in decreased market supply.
Transportation bottlenecks: Restrictions in the transportation sector have also affected the timely supply of Coal, further driving up prices.
International market impact: Fluctuations in the international Coal market, especially the rise in Australian coking coal prices, have had a certain impact on the domestic market.
According to the Zhitong Finance APP, Soochow has released a Research Report stating that China's Coal supply gap is being satisfied by increased imports, leading to the dependence on external Coal rising from 7% in 2022 to 11% in 2024, with Energy security issues starting to emerge.
It is expected that in 2024, China's Coal imports will increase by 0.05 billion tons on top of the 0.18 billion tons expected in 2023, ultimately reaching 0.52 billion tons. This will also raise China's dependence on external Coal to 11% in 2024, a significant increase from 7% in 2022.
The sustained substantial increase in imported Coal compensates for the domestic Coal supply gap, which has also caused Energy security issues to start emerging. It is anticipated that Coal prices will continue to strengthen in the first half of 2025, with a focus on Thematic Investment opportunities related to Energy security.
HAITONG INT'L Research Reports indicate that with the conclusion of the USA election, domestic fiscal policy is expected to strengthen as anticipated. The Coal Industry's fundamentals are stable, the short-term peak season is starting, and coal prices are expected to stabilize and rebound. The mid-term price center is still expected to maintain at a high level. Coal companies exhibit significant undervaluation and high dividend characteristics, warranting continued attention to the long-term allocation value of high-performing companies.
Related Hong Kong stocks in the Coal Sector:
China Coal Energy (01898), China Shenhua Energy (01088), YANCOAL AUS (03668), SOUTHGOBI (01878), YANKUANG ENERGY (01171), etc.
