HK Stock Market Move | MONGOL MINING (00975) surged over 9% in the afternoon. Institutions say MONGOL MINING's import price advantage remains, with expected demand-driven imports still ongoing.

MONGOL MINING (00975) rose more than 9% in the afternoon, with a 9.08% increase to HKD 6.85 at the time of reporting, with a trading volume of 29.01 million Hong Kong dollars. Guosheng Securities pointed out that, according to the Mongolian budget for 2025, Mongolia's Minister of Industry and Mineral Resources, Ts. Tuvshin, stated that they plan to export 83 million tons of coal in 2025. Taking into account China's share of exports and the share of coking coal imports, about 70%, it is estimated that Mongolia will import 57 to 58 million tons of coking coal in 2025, with an annual growth rate of about 0.3% to 2.1% compared to 2024, but actual growth will depend on the strength of the domestic coking coal market. The report pointed out that MONGOL MINING still has a price advantage in imports. The expectation of "quantity depends on demand" is still there. Referring to the financial data of Mongolian coking coal listed companies, the mining and transportation cost per ton of coal for MONGOL MINING in the first half of 2024 was $42.9, while for SOUTHGOBI it was $39.5, showing a significant cost advantage over domestic coking coal companies. Therefore, the main pathway for MONGOL MINING imports is "low domestic coking coal prices, poor sales high inventory at Sino-Mongolian import ports forcing a decrease in import quantity," rather than reducing prices to the production cost of Mongolian coal. Conversely, if domestic coking coal prices exceed expectations next year, it will also result in smooth imports of Mongolian coking coal and an increase in import volume.