Why did ASX coal shares having such a stellar run on Thursday?

Why are coal shares rising?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • ASX coal shares were in the green today 
  • India is looking at importing more coal 
  • The coal price climbed amid tight supplies and higher demand 

ASX coal shares finished ahead today amid India reportedly planning to step up coal imports.

Three major ASX coal shares include Whitehaven Coal Ltd (ASX: WHC), Yancoal Australia Ltd (ASX: YAL) and New Hope Corporation Limited (ASX: NHC).

The Whitehaven share price surged 6.9% today, Yancoal leapt 3.96% and New Hope rocketed 4.55%.

Let's take a look at what weighed on ASX coal shares today.

Three coal miners smiling while underground

Image source: Getty Images

Indian to import more coal

The Indian power minister has asked states to boost coal imports, Reuters reported. India is the next biggest coal exporter in the world after China. The country has 28 states and 8 union territories.

India wants to increase coal imports to boost coal inventories and meet demand for the commodity.

An official who attended a meeting between Indian power minister Raj Kumar Singh and the states told Reuters:

The states were asked to continue importing because the private sector will take till at least early 2025 to produce significant output

The coal price climbed 0.32% in global markets to US$326.05 per tonne, Trading Economics data shows. Amid the Russian sanctions on coal, some top consumers are looking to buy more from countries including Australia and South Africa.

Whitehaven recorded a record average coal price of $315 per tonne in the third quarter, up 211% from $101 in the prior corresponding period.

Share price summary

The Whitehaven share price has surged 304.9% in a year, while Yancoal has risen 156%. Meanwhile, New Hope shares have rocketed 200%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has increased 4.14% in the past year.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

Worker inspecting oil and gas pipeline.
Energy Shares

Down 12% in a week, has the Woodside share price got further to fall?

What’s going on with Woodside?

Read more »

A woman wearing a hard hat holds two sparking wires together as energy surges between them. representing the rising Li-S Energy share price today
Broker Notes

Down 15% in 2023, why AGL shares could continue to disappoint

Don't bet on AGL performing any better in the second half.

Read more »

Miner on his tablet next to a mine site.
Energy Shares

Will the Pilbara Minerals share price crash in 2023?

Could 2023 be another year where the share price of Pilbara Minerals powers down?

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Energy Shares

The whopper Whitehaven dividend is being paid today. Here's what you need to know

Whitehaven investors are about to get their largest interim dividend ever.

Read more »

sad party goer sitting alone after celebration
Energy Shares

Is the party well and truly over for ASX 200 coal shares?

Can these coal miners dig themselves out of this hole?

Read more »

Close up of a miner wearing a hard hat with a solemn look on his face, with an oil drill in the background.
Energy Shares

Is the Santos share price being stifled by 'reckless' growth?

Santos has a number of new, multi-billion-dollar oil and gas projects in the pipeline.

Read more »

A miner stands in front oh an excavator at a mine site
Resources Shares

Uranium and gold: What are the best ASX shares to buy for these minerals?

Here are 4 best stocks to consider if you want to cash in on the big themes of 2023.

Read more »

oil and gas worker checks phone on site in front of oil and gas equipment
Energy Shares

Why is the Woodside share price wilting 7% on Wednesday?

Is something going on with Woodside shares today?

Read more »