Coal stocks extended their afternoon gains, with YANKUANG ENERGY (01171) rising 5.81% to HK$9.83, CHINA QINFA (00866) climbing 3.79% to HK$3.01, CHINA SHENHUA (01088) advancing 2.42% to HK$38.02, and CHINA COAL (01898) gaining 1.06% to HK$9.57 as of press time.

On the news front, domestic dual coke futures markets surged on September 15, with both coking coal and coke main contracts rising over 5% during trading hours. According to Mysteel, a coal mine in Zhongyang, Luliang City, Shanxi Province ceased operations on September 14, with the resumption timeline remaining uncertain. The mine has a certified production capacity of 1.2 million tons.

Zheshang Securities noted that September's off-season expectations have weighed on coal prices, with spot prices gradually approaching long-term contract levels. Current coal prices are expected to bottom out and rebound, presenting opportunities for early positioning. As coal prices move closer to long-term contract coal prices (with low-grade coal price inversion), downstream purchasing activity is anticipated to improve.

Looking ahead to the fourth quarter, supply and demand are expected to gradually balance, with coal prices steadily rising. The firm maintains a "positive" rating on the sector, recommending positions in flexible thermal coal companies and distressed coking coal and coke companies poised for turnaround.