Coal Stocks Mostly Rise as Overseas Prices Climb, Geopolitical Tensions May Indirectly Boost Rates

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Yesterday

Coal stocks mostly advanced in Hong Kong trading. At the time of writing, MONGOL MINING (00975) rose 6.24% to HK$13.28, CHINA COAL (01898) increased 3.15% to HK$13.41, YANCOAL AUS (03668) climbed 5.17% to HK$35, and YANKUANG ENERGY (01171) gained 1.93% to HK$14.27. A Guotai Haitong research report noted that by 2026, overseas coal prices are projected to rise nearly 20% due to three factors: supply contraction in Indonesia (driven by export policy tightening and the March Ramadan period), upward momentum in oil and gas prices, and demand support from U.S. coal power policies. Against the backdrop of a global restocking surge, this reinforces the firm's strategic bullish outlook on the energy super-cycle over the next 5–10 years, recommending continued attention to global coal asset allocation. GF Securities highlighted that in 2022, factors such as Indonesia's coal export ban and the Russia-Ukraine conflict led to a more than 80% cumulative increase in domestic and international thermal coal spot prices from the year’s low in the first quarter. While coking coal futures reacted later, their upward trend lasted longer. Notably, escalating tensions in the Middle East have heightened market risk aversion. CITIC Securities indicated that if the Middle East conflict intensifies and drives up oil prices, coal prices could also see a meaningful boost. Additionally, if trade logistics for chemical products like methanol are disrupted, coal consumption demand from China's coal chemical sector may increase, further supporting coal prices. Combined with export disruptions from reduced Indonesian coal supply, expectations for domestic coal prices remain positive.

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