China Coal Industry:QHD price could potentially break 600RMB/t in coming weeks

Spot QHD coal price (5500kcal, FOB) has started to rise in recent days. Thermal coal spot price appreciated by c.RMB20/t (to RMB550-560/t) since late last week, while active future contact price (TRCU7) has uplifted by RMB40/t since end of May. The recent appreciation in coal prices has resulted in Shenhua/China Coal’s share prices appreciate 0.7%/8.8% respectively since beginning of this week.