Chinese Coal Companies Rise on Price Rebound: Hong Kong Mover
China Shenhua, which today reported a 40 percent jump in sales last month, rose the most in three months and traded up 5.4 percent at HK$24.55 at 1:40 p.m. local time, while China Coal Energy (1898) Co. touched a one-month high. They are the two top performers today on the Hang Seng Index.
The China Bohai-Rim steam coal price rose to 531 yuan ($87) a metric ton yesterday after falling for 16 weeks, according to Qinhuangdao Seaborne Coal Market’s yesterday. The 26-member Bloomberg Asia Pacific Coal Index gained 2.6 percent at 12:50 p.m., narrowing its decline this year to 31 percent.
“Coal market fundamentals are now showing early signs of recovery,” Daniel Kang and Waiyin Karen Li, Hong Kong-based analysts at JPMorgan Chase & Co. (JPM), said in an Oct. 14 note to clients. “The domestic thermal coal price war that erupted in late June, causing a collapse of nearly 15% in prices, is now over.”
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