HK Stock Market Move | Most coal stocks rise, with supply tightening possibly exceeding market expectations. With rising temperatures, peak season demand is expected to gradually pick up.

Most coal stocks are rising, as of the time of publication, Yankuang Energy Group (01171) is up 6.87% at HK$15.56; China Coal Energy (01898) is up 6.65% at HK$13.48; SHOUGANG RES (00639) is up 6.25% at HK$2.89; China Shenhua Energy (01088) is up 4.66% at HK$47.18. On the news front, Sealand believes that the combination of mine accidents and the traditional safety inspection and environmental protection month in June may lead to a prolonged tight supply period, which could surpass market expectations. On the demand side, affected by the subtropical high pressure system, daily coal consumption at power plants has increased compared to the previous month and is significantly higher year-on-year. The expected hot weather is gradually materializing, and if it continues, it will continue to stimulate power plants to increase their coal inventories, providing support for coal prices. Shanxi province stated that following the serious mine accident last week, safety inspections are ongoing, and it is expected that the scope of short-term production stoppages for maintenance may expand, directly suppressing the release of effective supply in the region. In addition, as temperatures rise, the peak season for coal demand is expected to gradually begin. The high uncertainty of the US-Iran conflict corresponds to high volatility, but it is difficult for oil prices to significantly decline in the short term. With coal PPI turning positive, a bullish outlook for coal prices, coal stocks are expected to receive a double boost.