Core Viewpoint - The coal industry is undergoing structural adjustments, with significant changes in supply and demand dynamics, as well as regulatory measures impacting production levels [1] Supply Side - The provinces of Shanxi, Shaanxi, and Inner Mongolia account for 81.45% of national coal production, while Xinjiang's production share has increased to 11.66% [1] - The implementation of "anti-involution" measures has led to stricter checks on overproduction in eight provinces, prohibiting production beyond capacity and raising entry barriers to accelerate the elimination of outdated capacity [1] Demand Side - There is a marginal improvement in demand for thermal coal, with electricity generation from thermal power plants increasing by 1.2% and 1.1% year-on-year in May and June, respectively [1] - The chemical coal sector remains robust, and coking coal prices are benefiting from the recovery in steel profits, with inventory levels at historically low to mid-range [1] Price Outlook - The expected price range for thermal coal in the second half of the year is between 700-750 yuan per ton, while coking coal prices are anticipated to continue rebounding [1] Investment Products - The coal ETF (515220) tracks the CSI Coal Index (399998), which selects listed companies involved in coal mining, processing, and sales, reflecting the overall performance of the coal sector [1] - For investors without stock accounts, options include the Guotai CSI Coal ETF Connect C (008280) and Guotai CSI Coal ETF Connect A (008279) [1]