ASX coal shares jumped today amid supply concerns in global markets.
New Hope Corporation (ASX: NHC) shares lifted 3.45%, while the Whitehaven Coal Ltd (ASX: WHC) share price closed 1.78% higher. Yancoal Australia (ASX: YAL) shares also jumped 1.96%.
In earlier trade, New Hope shares surged more than 6%, while Whitehaven shares rose nearly 5%. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) closed up 0.17% today.
So what happened to ASX coal shares today?
Coal prices rise
Coal prices jumped 1.7% in a day to US$419 per tonne, Trading Economics data shows. The coal price has gained more than 7% in a month and 194.55% in a year.
The coal price surged to record highs amid high demand from Europe, the Washington Examiner reported. A ban on coal imports from Russia to Europe will take effect by the second week of August. This is driving up demand from other countries, including Australia.
Whitehaven, New Hope, and Yancoal are all coal exporters
In India, thermal coal imports hit a record in June, Reuters reported today. The nation brought in more than 25 million tonnes of thermal and coking coal last month. This was a third more than the same time last year.
Shipments from Australia to India were higher than in May, but lower than the same time last year, it's reported.
European nations including Germany, the Netherlands, and Austria have recently lifted coal production restrictions amid the Russian invasion of Ukraine.
Share price snapshot
Yancoal shares have gained 144% in the past year, while the New Hope share price has leapt nearly 110%. Meanwhile, the Whitehaven share price has surged 152% in the past 12 months.
For comparison, the ASX 200 Energy Index has leapt 18% in the past year, and nearly 24% in the year to date.
