Coal Price Prospects Are Still Not Optimistic But Electricity Prices Are Resilient

CITIC Securities Research Report pointed out that hydropower output in the second half of the year is expected to rebound from the extremely dry low base in the same period last year, limiting the thermal power growth momentum in the second half of the year.

Considering the high inventory and continued supply of thermal coal, it is expected that the outlook for coal prices after the sharp drop is still not optimistic. The recovery of the profitability of the thermal power industry will be sustainable.