Chinese coal miners rally on expectation of rising demand, prices
Chinese coal miners rally on expectation of rising demand, prices

Chinese coal miners rally on expectation of rising demand, prices

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

Shares of Chinese coal miners stage a strong rally on expectation of rising demand and prices. In the A-share market, an index tracking coal mining companies, compiled by Wind Information, is surging by more than 2.6%, making it one of the best-performing sectors and compared to 0.4% gain for the benchmark Shanghai Composite Index. Shan

In Hong Kong, Yankuang Energy gained as much as 2.3% to hit HK$29.3, the highest level on record. China Coal is gaining 2.4% and China Shenhua is up 2.1%.

Several coal-producing regions are experiencing extreme weather such as rainstorms, which disrupt coal production and transportation and tighten market supply, said Southwest Securities in a note. Daily coal consumption at China’s power generators continued to climb last week, hydro power generations declined due to a widespread drought in southern China and meanwhile household electricity consumption rises amid the long-lasting heatwave, it said.

The coal sector is currently in the beginning of another upward cycle and this round of energy inflation is expected to last for 2 – 3 years, longer than previously expected and average coal prices will rise continuously, said Cinda Securities in a note.