The Whitehaven Coal Ltd (ASX: WHC) share price has come under heavy selling pressure today.
In afternoon trade the coal producer's shares are down 6% to $2.74.
Why has it fallen?
With no news out of the company, today's decline is likely to be attributable to a fall in the coal price overnight.
As well as oil and iron ore, coal futures softened overnight according to Metal Bulletin.
Concerns over an oversupply of steel in China is largely believed to be the reason for the negative sentiment.
After months of increasing production, Chinese steel production once again remained at elevated levels in May.
At the same time, according to Reuters, Chinese steel exports between January and May have fallen 26% compared to the prior corresponding period.
Should steel production come to a grinding halt, steel-making ingredients such as coal and iron ore could see a significant drop in demand.
