HK Stock Market Move | Shougang Resources (00639) continues to fall by over 5%, the coal-steel-coke industry chain has not shown any signs of recovery, and coking coal is expected to enter a period of temporary supply contraction.

SHOUGANG RES (00639) fell by more than 5% again, at the time of writing, down by 4.96% to HKD 2.3, with a turnover of HKD 25.3619 million. On the news front, the China Coal Transportation and Marketing Association released a report stating that after 2025, there has been no improvement in the operation of the coal-steel-coke industry chain, and confidence in the future market is generally lacking at all levels. Market players are cautious in their raw material purchases, with a weaker willingness to stockpile resources for the winter compared to previous years, leading to further intensification of market dynamics between upstream and downstream players, with weaker varieties facing heavier pressure. In terms of the supply and demand of coking coal, under the dual pressure of strengthened safety supervision and a market downturn, state-owned large mines proactively controlling production during holidays has become a reality. Subsequent coking coal production is expected to enter a phase of temporary supply contraction, with the market pressure of oversupply no longer expected to increase. Haitong points out that SHOUGANG RES is mainly engaged in the mining of coking coal, as well as the production and sale of raw coking coal and refined coking coal, located in the core production area of high-quality coking coal mines. The company was established in 1985 and in 2009, Hong Kong's First Control engaged in capital operation and acquired Fujian International Energy Group Limited, renaming it SHOUGANG RES in 2011. In 2021, shareholders further acquired shares at a premium, demonstrating confidence in the company's development. The company's controlling shareholder and actual controller is Shougang Group, which is also a strategic customer of the company, aiming to become one of China's major integrated coking coal producers.