It is expected that this round of US interest rate cuts will have limited impact on domestic coal prices
In the first half of the year, coal supply and demand were generally stable, and imported coal increased by 12.5% year-on-year.
The China Coal Industry Association announced the development of China's coal industry in the first half of the year. Raw coal production declined year-on-year in the first half of the year, and the level of clean and efficient utilization of coal and electricity increased dramatically.
In the first half of the year, large-scale industrial raw coal production was 2.27 billion tons, a year-on-year decrease of 39 million tons. Among them, in May and June, China's hydropower output increased dramatically, and wind power generation grew rapidly. Thermal power generation decreased by 4.3% and 7.4%, respectively, over the same period last year, leading to a drastic reduction in coal consumption.
The Zhitong Finance App learned that Guotai Junan Securities released a research report saying that the coal industry has profoundly changed the supply and demand structure, gradually being “utilised”, and also reflects the investment strategy problem where high-dividend assets are more favored by the market in the context of scarce assets and a downward trend in risk-free returns.
Unlike global pricing of crude oil and natural gas, China's global demand for coal accounts for 56%, and the dependence on imports is only about 10%. This is just a supplement. The rise and fall in China's coal price is more reflective of changes in the supply and demand pattern of China's coal industry.
Therefore, it is expected that this round of US interest rate cuts will have limited impact on domestic coal prices; high-dividend dividend assets are still an important investment direction in the medium to long term.
Companies related to the coal sector include:
Yancoal Australia (03668), Mongolian Coking Coal (00975), China Shenhua (01088), Shougang Resources (00639), Yankuang Energy (01171), South Gobi (01878), China Coal Energy (01898), China Qinfa (00866), etc.