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Shares of Chinese coal companies slide across the board in the A-share market, with Shanxi Coking Coal sliding 5.3% as of 10:40 am local time Yankuang Energy down over 4%, Shanxi Lu’an Environmental Energy down 3.9%.
Coal price at major production hubs has fallen significantly this month, while coal price at ports continues to decline, leading to a strong wait-and-see sentiment in the market, Huatai Futures said in a research note.
As of March 3rd, the Shaanxi Yulin 5,800 Kcal/kg NAR coal price index stood at 1,052 yuan per tonne, sliding by 133 yuan from the previous month, and the Inner Mongolian Ordos 5,500 Kcal/kg NAR coal stood at 775 yuan per tonne, falling by 55 yuan from the previous month; and the Shanxi Datong 5500 kcal/kg NAR coal price index was 998 yuan per tonne, down 60 yuan from the previous month.
In addition, the restrictions on coal imports from Australia has been relaxed, and imported coal quotations continuing to fall, it said.
As it’s low season for coal consumption, with weakness in both supply and demand, and the price of coal has entered a stalemate stage, with a weak trend expected in the short term, it added.
