Coal sector gains strength, Shaanxi Black Cat hits limit up, Dayou Energy and others surge higher.

The coal sector gained momentum and rose during the trading session on the 19th. As of the latest report, Shaanxi Black Cat hit the daily limit, Dayou Energy rose over 4%, and China Shenhua, Shaanxi Coal Industry, China Coal Energy, and Yankuang Energy all increased by more than 3%.

Institutions stated that the geopolitical conflicts between the US, Israel, and Iran have triggered a rapid rise in international oil, gas, and chemical prices. Influenced by energy price linkages and coupled with Indonesia’s coal quota and export policy adjustments, international coal prices have also increased. This event has heightened capital market attention on energy security and energy price inflation, driving the overall strength of the energy sector.

Guosheng Securities pointed out that the core of this round of trading is overseas, meaning that “black swan” events in international markets have caused overseas prices to surge. This opens up significant upside potential for domestic coal prices. In the short term, domestic coal prices continue to show seasonal weakness, which is expected. However, there is limited room for adjustment, and after some time for the market to digest the recent gains, domestic prices are expected to gradually shift due to the continued rise in overseas prices. As the domestic replenishment cycle approaches, coal prices are expected to challenge the 1,000 yuan mark.