HK Stock Price Fluctuated | Mongol Mining (00975) rises over 6% again, Yongju Coal's coal mine production suspended, supply of coking coal in Lvliang market tightens.

In the morning session, Mongol Mining (00975) rose more than 6%, with a 6.17% increase and a closing price of HK$4.3. The trading volume was HK$16,802,000. In terms of news, due to a large office fire, all coal mines owned by Dongtai Group's Yongju Coal Industry have ceased production, involving a capacity of about 21.9 million tons. The accident has led to a general increase of 200-300 yuan/ton in the prices of raw coal in places such as Linfen, Xiangning, and Lvliang. Galaxy Futures stated that Lvliang in Shanxi is a major production area for high-quality coking coal in China. The disturbance in the supply of coking coal and the need for winter stock replenishment downstream may lead to a tight supply situation if the mines in the vicinity of the accident are shut down for a long time. Guosheng Securities pointed out that the current valuation of the coking coal sector in the market is inverted compared to the valuation of the thermal coal sector. The main reason is that the market expects listed companies in the thermal coal sector to have more stable profitability. However, it should be noted that with the negation of negative feedback expectations and the boost from winter storage expectations, the coking coal sector is well-positioned for an upward movement and prices are expected to return to the high point at the beginning of the year. It is predicted that with the future rise in prices, the coking coal sector will experience a double impact on performance and valuation.