One of the biggest movers on the market today has been the Whitehaven Coal Ltd (ASX: WHC) share price.
At the time of writing the coal miner's shares are up 8.5% to $3.36. Incredibly this means Whitehaven's share price has gained a remarkable 21% in the last five trading sessions.
Today's gain is likely to be attributable to a big jump in coking coal prices this morning. According to the Australian Financial Review, the spot price of coking coal rose 15.3% from US$152.30 per tonne to US$175.70 per tonne.
The expected supply disruptions in the aftermath of Cyclone Debbie has led to steelmakers scrambling to get hold of the commodity, driving prices significantly higher in the process.
It's not hard to see why this would happen. After all, Queensland produces over 50% of the world's seaborne coking coal and the important Goonyella train line that carries half of the state's coal exports looks set to be out of action for up to five weeks.
The South32 Ltd (ASX: S32) share price is also higher on the news today, gaining around 3.5%. Both miners have operations based outside Queensland, so will avoid disruption and be able to capitalise on higher prices.
Should you invest?
Whitehaven's share price has rallied over 460% in the last 12 months. Whilst there could still be plenty of gains ahead for its shareholders, I can't help but feel the majority of them have now gone.
For this reason I think there's more downside risk than upside potential in its shares at this point in time. But thanks to its diverse operations, South32 could still be a good option for investors looking to gain exposure to the resources sector.
