New Hope Corp Ltd (ASX: NHC), Yancoal Australia Ltd (ASX: YAL), and Whitehaven Coal Ltd (ASX: WHC) shares are charging higher on Friday despite the broader market malaise.
In afternoon trade today, the S&P/ASX 200 Index (ASX: XJO) is down 0.3%.
Here's how these three ASX 200 coal stocks are tracking at this same time:
- Whitehaven shares are up 4.8% at $9.23 each
- New Hope shares are up 4.2% at $5.67 apiece
- Yancoal shares are up 3.5% at $8.35 each
So, what's going on?
Image source: Getty Images
ASX 200 coal stocks lift on rising energy concerns
With no fresh price-sensitive news out from any of the three ASX 200 coal stocks, it looks like they are all enjoying renewed investor interest amid a rising coal price.
Thermal coal is trading for US$142 per tonne, up 3.2% overnight, according to data from Trading Economics. This sees the coal price up more than 21% in March.
Like oil and gas, the coal price – and the shares of New Hope, Yancoal, and Whitehaven – have risen sharply since the onset of the Iran war on 28 February.
Today's increase comes after the thermal coal price dipped to US$138 per tonne earlier this week. That drop was driven by hopes that the war could be nearing an end after United States President Donald Trump extended his deadline to commence bombing Iran's power stations, saying the nations are involved in negotiations.
But with the US moving significant new forces into the conflict zone, and Iran denying it is seeking a deal, hopes of a near-term ceasefire have faded.
And as we hope for cooler heads to prevail, energy prices and energy stocks are moving higher.
How have New Hope, Yancoal, and Whitehaven shares performed in March?
Since the onset of the Middle East conflict on 28 February, the ASX 200 has slumped 7.8%.
As for the ASX 200 coal stocks, Yancoal shares are up 42.4% over this time; New Hope shares have gained 20.9%; and Whitehaven shares are up 18.0% in March.
Looking ahead, while it's impossible to predict how coal prices will move longer term, I think it's likely they will remain elevated over the coming months. That's because even the rapid end to the conflict that we're hoping for will leave nations around the world scrambling to secure their depleted energy needs.
That should help support the recent outsized gains posted by New Hope, Yancoal, and Whitehaven shares.
We could also see significant increases in the next round of dividends from the ASX 200 coal stocks as they share their growing profits with stockholders.
