Hong Kong-listed coal stocks extended losses, with CHINA QINFA plunging more than 9%. Other major decliners included China Dynamics, Jinma Energy, and China Coal Energy, all down over 3%, while Yancoal Australia, China Shenhua, and Yankuang Energy fell more than 2%.

On the thermal coal front, prices at Qinhuangdao Port declined week-on-week, with Datong’s local prices also softening. As of December 6, the market price for Shanxi-produced thermal coal (Q5500) at Qinhuangdao Port stood at 791 yuan per ton, down 27 yuan from the previous week.

A research report from Cinda Securities noted that coal demand remains weak and may continue fluctuating, while supply constraints limit deeper declines. The sector is currently in the early stages of a new upward cycle, supported by favorable fundamentals and policy tailwinds, making it an opportune time to accumulate coal stocks at lower levels. However, unseasonably warm weather across China has kept power plant consumption below expectations, pressuring port and domestic coal prices. In the near term, above-average temperatures are expected to persist for another 1-2 weeks, likely capping demand and prolonging the weak adjustment in coal prices.