Jinwu Financial News | The Coal Industrial Concept(coal Industry) weakened, with GREEN LEADER (00061) falling 8.33%, YANKUANG ENERGY (01171) down 4.73%, CHINA QINFA (00866) down 4.58%, MONGOL MINING (00975) down 3.11%, China Shenhua Energy (01088) down 3.09%, and E-COMMODITIES (01733) down 2.54%.
Datong Securities stated that in terms of fundamentals, Thermal Coal and Coking Coal short-term prices are still at low levels. Due to the arrival of a cold wave, Thermal Coal prices have rebounded from the bottom, and coal prices have slightly risen at the pit mouth as the main coal production areas have completed production tasks ahead of schedule, with supply and demand being relatively stable. It is expected that coal prices will maintain a stable trend in the medium to long term. Coking Coal inventory is high, and terminal demand is weak. With the Central Economic Work Conference releasing Bullish Signals and a series of policies for the real estate market stabilizing and recovering, it is expected that prices will still linger at low levels in the short term, while there is hope to stop the decline and stabilize in the medium to long term. From the secondary market, recent Large Cap fluctuations have been significant, but the Coal Sector has experienced the smallest decline this week, showing strong defensive attributes and demonstrating high allocation value.
Xinda Securities believes that in the context of the energy capacity cycle, whether in raw material costs such as oil, electricity, and Steel, or in labor and taxes, combined with increasingly fewer easily developed mines, the rising trend of coal mining costs both domestically and internationally will be difficult to reverse fundamentally, making it hard to continue significantly reducing costs. Additionally, as the costs of transferring coal mining rights have clearly increased, it is also necessary to further raise the central price of coal to improve the profitability expectations of coal enterprises and enhance capital expenditure willingness, thereby promoting an increase in investment enthusiasm for coal mine construction. Coal is still on the path of value reassessment and might leap into a new realm.
