China brokers see coal supply staying tight, prices high despite output push

China's coal supply is likely to remain broadly tight and prices elevated even as multiple government departments jointly push for a safe and steady output increase, CITIC Securities said in a research note. The policy aims to boost coal output steadily and secure supply for peak-season demand, but production gains remain constrained by safety conditions, approval procedures and monthly output intensity, the brokerage said. It recommended buying into companies with strong earnings on dips.

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