Chinese coal stocks lower and coal prices decline Limited

Chinese coal stocks fell slightly earlier this morning, with China Shenhua (01088-HK) now down 2.56%, and the coal-01898-hk and Yanzhou Coal (01171-HK), which has signed a key coal contract and recorded a modest rise in prices, is also soft 0.2% and 1.25%. Daiwa issued a report saying that maintaining the neutral rating of the Chinese coal industry is expected to show a limited space for spot coal prices to be improved. Since Qinhuangdao spot price has risen from RMB 597/ton to 620 yuan/ton, the discount between regional prices and Qinhuangdao spot prices has narrowed to 0, which means that overseas imports are unlikely to increase. This would effectively reduce the supply of China's domestic coal market, thereby eliminating the risk of falling part of the spot price of coal. Shares, big and maintain China Shenhua stronger than the market rating, the target price of HK $24.6.