China National Coal Association Promotes Dynamic Balance of Coal Supply and Demand, Signs of Coal Price Bottoming Out

The China National Coal Association and the China Coal Transportation and Distribution Association have scheduled the "2025 Summer National Coal Trading Conference" for July 10-11. The theme of this conference is "Promoting Efficient Allocation of Resources and Elements to Achieve Dynamic Balance in Coal Supply and Demand." The conference aims to earnestly implement the decisions and arrangements of the CPC Central Committee and the State Council, continuously enhance the resilience, competitiveness, development capacity, and sustainability of the coal industry chain and supply chain, and maintain stable and healthy economic development as well as overall social stability.

Guosheng Securities, in its review of the previous three rounds of coal price bottoming-out processes, pointed out that since the current round of coal prices peaked in October 2021, they have been adjusting for nearly four years. Prices have fallen from 1,615 yuan/mt on October 25, 2021, to around 618 yuan/mt on June 5, 2025, with a cumulative decline of 997 yuan/mt. The absolute price level has also fallen back to pre-rally levels (January 2021). Mired in a prolonged downturn in prices, the market has continued to search for a bottom without success, and sentiment has also reached its nadir. The darkness before dawn is particularly trying. However, the turning point is beginning to glimmer through the cracks. Some production capacities have already fallen into losses, and cost support is gradually emerging. All that is needed is policy nourishment to break through and rejuvenate.

According to the theme database of Cailian Press, among the relevant publicly listed firms are:

China Shenhua EnergyAs of December 31, 2024, the company's coal reserves stood at 34.36 billion mt. According to the company's disclosed 2024 dividend plan, it intends to distribute cash dividends totaling 44.903 billion yuan.

Yankuang EnergyThe company has three major production sites in Australia: Moolarben, HVO, and MTW. Its subsidiary, Yancoal Australia, is the largest independent publicly listed coal company in Australia, controlling 3.5 billion mt of coal resources and 697 million mt of recoverable coal reserves.