S&P/ASX 200 Index (ASX: XJO) coal shares are firing up again today despite the broader market hovering in negative territory.
At the time of writing, the ASX 200 is down 0.8% following a choppy session on Wall Street overnight.
This follows yesterday's short-lived rally across global markets on the back of the US' upbeat inflation report.
However, some ASX 200 coal shares are steaming ahead on Friday, leading to stellar gains for the week.
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Which shares are making gains?
The Stanmore Resources Ltd (ASX: SMR) share price is up 11.14% during afternoon trade to $2.245.
The Australian resources company released its half-year results before market open, exciting investors. Its shares are up 30% since this time last week.
Meanwhile, the Whitehaven Coal Ltd (ASX: WHC) share price is currently up 3.72% to a decade high of $6.70.
The coal producer has had a fantastic year due to favourable external forces pushing up demand for the commodity. Its shares are 13% higher for the week.
Lastly, the New Hope Corporation Limited (ASX: NHC) share price is also pushing upwards despite no company announcements.
The diversified energy company's shares are currently swapping hands for $4.39 apiece, up 3.29%. It's up 12% this week and nearing its multi-year high of $4.58.
Let's take a look at what's behind the ASX 200 coal shares' strong performance.
What's fuelling these ASX 200 coal shares lately?
Giving rise to these ASX 200 coal shares this week is the recent warning from steel manufacturing giant, Tata Steel.
The company's CEO T.V. Narendran highlighted a possible supply shortage if Australia does not increase coal production.
He noted that Indian steel consumption or production is going to double in the next 10 years. This provides a lucrative opportunity for Australia to take advantage and ramp up its exports of coking coal to India.
However, if this fails, the alternative is to buy Russian coal regardless of the ongoing war in Ukraine.
In addition, expectations that China could soon welcome back Australian coal exports are also providing support.
According to Trading Economics, the price of coal is currently trading at US$401 per tonne, up 0.59% from yesterday.
When looking at year-on-year, coal prices are up 134%, which isn't far off from the record high of $435 per tonne.
