Why the Whitehaven Coal (ASX:WHC) share price is jumping 9% today

This coal miner is firing on all cylinders on Tuesday…

| More on:
Businessman outside jumps in the air as the Woodside share price rises today

Image source: Getty Images

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

The Whitehaven Coal Ltd (ASX: WHC) share price is starting the year with a bang.

In morning trade, the coal miner’s shares are up 9% to $2.85.

This means the Whitehaven Coal share price is now up 14% since this time last month.

Why is the Whitehaven Coal share price zooming higher?

The catalyst for the strong gain by the Whitehaven Coal share price this morning has been a rise in the coal price.

This was driven by news that Indonesia, the world’s largest exporter of thermal coal, has banned coal exports.

According to Reuters, Indonesia banned the shipments because of concerns it could not meet its own power demand. The country’s President, Joko Widodo, has threatened to revoke business permits for any miners who fail to meet domestic market requirements.

The team at Morgan Stanley has warned that this ban could lead to “meaningful upside” to its forecast for high-quality thermal coal at the Newcastle, NSW port averaging US$140 a tonne in the first quarter of 2022.

The broker, courtesy of Bloomberg, comments: “Losing 40% of the seaborne market overnight, in the midst of peak winter demand, could set us up for another coal price spike.”

Coal miners rise

It isn’t just the Whitehaven Coal share price rising on the news. A number of other ASX shares with exposure to coal are also pushing higher this morning.

This includes the Coronado Global Resources Inc (ASX: CRN) share price with a 3.5% gain, the New Hope Corporation Limited (ASX: NHC) share price with a 4.5% gain, and the Yancoal Australia Ltd (ASX: YAL) share price with its gain of 6%.

All in all, this has helped drive the resources sector notably higher on Tuesday. At the time of writing, the S&P/ASX 200 Resources index is up 2%, which is double the ASX 200’s gain.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Resources Shares

An older man wearing glasses and a pink shirt sits back on his lounge with his hands behind his head and blowing air out of his cheeks.
Resources Shares

ASX lithium stocks avoid share price shock amid commodities lashing

Core Lithium and Allkem are outperforming their major ASX resources peers today.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Why is the Fortescue share price slipping 5% today?

What's impacting the miner's shares on Wednesday?

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Resources Shares

Why did the Rio Tinto share price hit the brakes in FY22?

Rio Tinto shares recorded one of its most volatile years on record.

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Broker names 2 ASX mining shares to buy in FY23

These ASX mining shares have been named as buys for FY 2023...

Read more »

a female miner looks straight ahead at the camera wearing a hard hat, protective goggles and a high visibility vest standing in from of a mine site and looking seriously with direct eye contact.
Resources Shares

How did the South32 share price perform in FY22?

Off to a new financial year for the diversified miner.

Read more »

a man in a hard hat, high visibility vest and gloves holds a stop sign and holds up a hand in a halt gesture on a road.
Share Market News

What’s happening with Firefinch shares following a $13 million lithium sale?

Firefinch shares are going nowhere today.

Read more »

A GWR Group female employee in a hard hat and overalls with high visibility stripes sits at the wheel of a large mining vehicle with mining equipment in the background.
Resources Shares

Why has the Pilbara Minerals share price soared 57% in FY22?

How did the Pilbara Minerals share price perform in the financial year?

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Why did the Fortescue share price sink in FY22?

FY22 saw Fortescue’s fortunes follow the iron ore price, but the mining giant also advanced its green ambitions.

Read more »