HK Stock Moves | Coal Stocks Rise Moderately, Short-term Coal Substitution Effects May Support Demand, Market Supply-Demand May Enter Phase of Tightness

Tongtong Finance APP learned that coal stocks are moderately rising. As of the time of writing, Power Assets Development (01277) rose 6.72% to HKD 2.68; Yanzhou Coal Australia (03668) increased 3.99% to HKD 45.88; Yanzhou Mining Energy (01171) gained 2.22% to HKD 17.02; Shougang Resources (00639) went up 1.52% to HKD 3.55.

UBS released a research report stating that since the outbreak of the Iran conflict, European natural gas prices have increased about 50%, Brent crude oil prices about 30%, and Newcastle port (NEWC) thermal coal prices about 15%. The high natural gas prices support coal prices. The bank has raised its 2026 forecast for NEWC thermal coal prices by 10%, from $115 per ton to $126 per ton. Although large-scale switching from natural gas to coal is not expected in the short term, if energy prices remain high, coal demand could increase.

Changjiang Securities estimates that if the Strait of Hormuz is blocked for a long period, global coal demand for power generation could increase by 84.86 million tons annually; if China’s coal chemical plants operate at full capacity, this alone could boost domestic coal consumption by nearly 50 million tons. On the supply and demand side, Shanxi Securities pointed out that Indonesia’s supply outlook remains uncertain, and with the ongoing escalation of the US-Iran conflict, global coal supply and demand may enter a phase of tension, further supporting prices.