The S&P/ASX 200 Index (ASX: XJO) is climbing 0.13% today, but ASX 200 coal shares are outperforming the index.
The Whitehaven Coal Ltd (ASX: WHC) and New Hope Corporation Limited (ASX: NHC) share prices are both lifting today.
Let's take a look at what is going on with ASX coal shares today.
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Coal prices lift
Whitehaven shares are rising 7.36% today, while New Hope shares are lifting 6.12%. Meanwhile, ASX All Ordinaries share Yancoal Australia (ASX: YAL) is lifting 5.41%.
The thermal coal price held steady overnight at US$413.90 a tonne, according to ANZ research. Meanwhile, the coking coal futures lifted 2% to US$250 per tonne.
In a report compiled by ANZ senior commodity strategist Daniel Hynes and commodity strategist Soni Kumari, the authors noted coal prices "face upward pressure" due to European demand. Analysts said:
An impending energy crisis in Europe is likely to switch power utilities from gas to coal, this could increase competition for seaborne coal.
Overnight, European natural gas hit a record high amid supply shortages.
Thermal coal has lifted nearly 4% in the past month, while it has surged 142% in the past year. Coal prices are forecast to remain high amid the Eastern European war, according to trading economics. Europe is turning to seaborne coal from South Africa, Indonesia and Australia.
Yancoal reported record revenue and earnings in FY22 results released yesterday. The company noted this result was driven by the higher coal prices. Yancoal predicted thermal coal prices will "remain high" in 2023. The company said:
Ongoing supply-side constraints and demand resulting from shortages and disruption to global energy markets should sustain elevated prices for seaborne thermal coal into 2023.
ASX coal share recap
The Whitehaven share price has exploded 237% in a year, while New Hope has surged 156%.
Meanwhile, the Yancoal share price has exploded 130% in a year.
In comparison, the ASX 200 has lost about 5% in the past year.
