Tuesday, July 7, 2026

Market Performance Recap

The Shanghai Composite Index declined 1.26%, the Shenzhen Component Index fell 1.24%, and the ChiNext Index dropped 0.94%. The coal sector underperformed, declining 2.35%.

The top three gainers in the sector were Huaihe Energy (+0.97%), China Shenhua Energy (-0.36%), and Huayang Co., Ltd. (-0.47%).

The bottom three performers were Jiangxi Tungsten Heavy Industry Equipment Co., Ltd. (-10.00%), Shanxi Coal International Energy Group Co., Ltd. (-6.80%), and Dayou Energy Co., Ltd. (-5.98%).

Futures Market Recap

Data source: iFind.

Coal Industry Chain Observations

Data sources: China Coal Resource Network, iFind.

Key Industry Developments

On July 7, data from China Coal Resource Network citing Kpler vessel tracking showed Russia's seaborne coal exports reached 16.0693 million tonnes in June 2026. This represents a month-on-month increase of 7.86% and a year-on-year rise of 11.20%, reaching the highest level since June 2023. Exports to mainland China accounted for 41% of the total, at 6.6673 million tonnes, up 28.37% month-on-month and 18.15% year-on-year. Cumulative exports for the first half of the year totaled 82.5856 million tonnes, a 4.61% increase year-on-year.

On July 7, China Coal Resource Network reported, citing vessel tracking data compiled by URSA shipbrokers, that combined coal exports from South Africa and Mozambique reached 45.35 million tonnes in the first half of 2026, a year-on-year increase of 11.3%. South African exports were 35.66 million tonnes, up 13.1%, while Mozambique exported 9.70 million tonnes, up 5.3%. India remained the largest buyer, importing 20.58 million tonnes, accounting for 45.2% of the combined total.

On July 7, China Coal Resource Network reported that Indonesia's state-owned railway company, KAI, stated it handled 32.50 million tonnes of freight in the first half of 2026, with coal transport accounting for 26.53 million tonnes, nearly 82% of the total. By the end of June, the company had added 1,080 freight flat cars for Sumatra services and launched the "Brumbung Cargo" train service with a capacity of 800 tonnes per train, further enhancing bulk commodity transport capacity.

On July 7, China Coal Resource Network reported that heavy rainfall from Typhoon Maysak caused severe flooding in multiple areas of Guangxi, significantly disrupting port operations and coal logistics. As a major receiving region for seaborne imported thermal coal, Guangxi accounts for approximately 11% of China's total seaborne thermal coal imports this year, second only to Guangdong and Fujian. Extreme weather has impacted loading/unloading at ports like Fangchenggang and Qinzhou, as well as rail and road transport, with disruptions to imported coal transportation and port operations expected to continue in the short term.

Listed Company Updates

Xinji Energy

On July 7, China Coal Xinji Energy Co., Ltd. released its operating data for the first half of 2026. Raw coal output was 11.3313 million tonnes, up 1.20% year-on-year. Commercial coal output reached 10.2543 million tonnes, up 3.19%. Commercial coal sales volume was 10.1200 million tonnes, an increase of 7.27%, of which external sales were 6.1581 million tonnes, down 3.59% year-on-year. Revenue from the coal business was RMB 5.655 billion, up 13.43%, with gross profit of RMB 2.232 billion, up 17.45%. For its power business, electricity generation was 12.302 billion kWh, surging 84.55% year-on-year, with grid-connected electricity at 11.624 billion kWh, up 85.15%. The average grid tariff (excluding tax) was RMB 0.3655/kWh, down 1.64%.

Dayou Energy

On July 7, Henan Dayou Energy Co., Ltd. announced it received an "Enforcement Notice" regarding progress in a lawsuit. The company recently received the notice from the Xinluo District People's Court in Longyan, Fujian Province, indicating the case has entered the enforcement stage, with the company and its subsidiary Yuxi Coal Storage and Distribution Center as the subjects of enforcement. The case involves a coal purchase and sales contract dispute with an amount of RMB 58.2351 million, excluding penalties and other fees. The company stated it will fulfill relevant obligations as required by the notice. The impact on current or future profits will be determined based on the annual audit report.

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