Coal stocks in Hong Kong advanced against the broader market trend. By the time of writing, Yancoal Australia (03668) had risen by 6.86% to HK$45.68. Kinetic Development (01277) increased by 3.14% to HK$2.30. China Coal Energy (01898) was up 1.91% to HK$14.39. China Shenhua (01088) gained 1.1%, trading at HK$47.98.

The upward movement follows reports from Iranian sources stating that Iran successfully struck the US-exclusive zone of the Riyadh oil and gas joint refinery complex located on the outskirts of the Saudi capital. Separately, QatarEnergy issued a statement confirming that missiles targeted the industrial city of Ras Laffan later that evening. The statement indicated the attack triggered a major fire, resulting in significant property damage. Additionally, Israel reportedly attacked Iran's South Pars gas field.

Analysis from Guosheng Securities points out that as a crucial clean fuel, a sharp price surge in LNG would drive up costs for industrial, power generation, and residential gas use. This is expected to encourage power plants and industrial users to switch to alternative energy sources like coal-fired power and coal-to-gas, thereby boosting demand for thermal coal procurement. Furthermore, a long-term price comparison relationship exists between LNG and coal within the energy cost structure. A dramatic spike in LNG prices would disrupt this existing balance, prompting a market-led re-evaluation of coal's value and raising the floor for coal prices. Moreover, rising gas prices would also increase raw material costs for coal chemical production, further enhancing the cost competitiveness of coal-to-chemical products and stimulating demand for coal used in chemical processes.