There are four direct reasons why coal stocks are soaring after the holiday

1. The external market was higher due to the weakening of the US dollar. During the National Day, the global commodity market prices continued to rise. The pre-holiday gold price approached 1350 US dollars per ounce (last week hit a record high of 1,388.10 US dollars/ounce), and the crude oil price broke through the US$83/barrel mark. Create new highs in the near future. The rise in coal prices as a substitute for crude oil is expected to rise. As of October 11, international coal prices have risen in an all-round way: Australia's NEWC Port, Richard Port in South Africa and ARA thermal coal in Europe's three ports rose by US$0.06/ton, US$4.99/ton and US$2.83/ton respectively from the previous week.

2. Domestic coal prices climbed as of October 11th, Qinhuangdao port coal prices rebounded slightly, and the latest offer of Shanxi Good Mix (5500 kcal) was 725 yuan/ton, up by 5 yuan/ton from the previous week; thermal coal prices in some areas in North China and Northeast China The price rose from RMB 5 to RMB 15/ton in the previous week; the price of coking coal in Heilongjiang and Henan increased by RMB 20/ton and RMB 60/ton from the previous week; the price of anthracite in Henan, Shanxi, and Zhejiang increased by RMB 40-100/ton from the previous week. Coal prices and coal prices have risen throughout the country, and the coal price of the listed company has also risen.

3. Valuation approached historical lows Soochow Securities said that from the perspective of industry prosperity, the total semi-annual report of all listed coal companies showed that the main business and operating profit increased by 43.84% and 26.68% respectively year-on-year. While the performance was excellent, the coal index fell by more than 30% instead of the Shanghai and Shenzhen 300 Index, showing a clear deviation. As the world looks at the past, the overall valuation of the coal sector is below the historical average in the valuation of the coal sector in the past decade, excluding the valuation of the coal sector during the financial crisis. The current valuation of the coal sector is only equivalent to 2005. The level of valuation.

4. Factors such as the peak season period are the peak season for coal consumption in the fourth quarter, and the downstream industries are released from repressed production capacity. For example, in the steel industry, the steel prices under good demand are gradually stabilizing, and the quality of high-quality steel rebounds (Baosteel and Wuhan Iron and Steel have successively increased. The ex-factory price shows that the steel mills are optimistic about the demand in the fourth quarter. It will increase the bearing capacity of the coking coal prices, and advance the coal into the winter storage period. At the same time, according to media reports, the northern hemisphere in the winter of this year will usher in a cold winter of 1000 years. The cold weather brought by the drop in temperature and transport difficulties will also increase the scope for coal price negotiations. In addition, Shanxi Securities believes that the reform of electricity prices is also conducive to the upward adjustment of coal prices.