ASX coal shares are in focus today amid a large steel maker issuing supply warnings.
Coal shares on the ASX include Whitehaven Coal Ltd (ASX: WHC), New Hope Corporation Limited (ASX: NHC). Others include Yancoal Australia Ltd (ASX: YAL) and Allegiance Coal Ltd (ASX: AHQ).
Let's take a look at what is going on.
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Opportunity to 'double' coking coal exports
Steel manufacturing giant Tata Steel is warning Indian companies may need to buy from Russia if Australia does not increase coal production.
Tata Steel Limited (NSE: TATASTEEL) CEO T.V. Narendran said in comments to The Australian:
The alternative to Australian coal is Russian coal. I know currently Russia is geopolitically not the best place to buy coal from, but going forward that is an option that Indian companies have..
He touted the "great opportunity" for the metallurgical coal industry" in Australia to invest and grow in India, adding:
Indian steel consumption or production is going to double in the next 10 years, which means there's an opportunity for Australia to double its exports of coking coal shipments to India over the next 10 years.
Narendran will meet with the Queensland Government this week in a bid to build a deeper relationship with India and grow coal exports between Australia and India.
Metallurgical coal is going to be operating for quite some time to come, particularly in India.
I think…the conversation with the government is more about how
can we plan better for growth.
Whitehaven shares are lifting nearly 2% today, while New Hope shares are jumping nearly 3%. The Yancoal Australia share price is also rising more than 3% today, while Allegiance Coal is lifting nearly 6%.
