Why are ASX coal shares sliding today?

ASX coal shares are struggling on the market today.

The Whitehaven Coal Ltd (ASX: WHC) share price is falling 3.88% — having earlier been down almost 11% — and Allegiance Coal Ltd (ASX: AHQ) is dropping 4.35%. The S&P/ASX 200 Energy Index (ASX: XEJ) is 0.74% in the red at the time of writing.

Other ASX coal shares to fall include New Hope Corporation Limited (ASX: NHC), sliding 7%, and Coronado Global Resources Inc (ASX: CRN), falling 2.6%. Meanwhile, Yancoal Australia (ASX: YAL) is in a trading halt.

Let’s take a look at what could be impacting ASX coal shares today

Coal prices fall

ASX coal shares appear to be reacting to a decline in the coal price. Coal prices have descended 1.96% to US$400 per tonne, Trading Economics data shows.

Meanwhile, ministers from the G7 are considering phasing out coal energy by 2030. The energy, climate, and environment ministers are meeting in Berlin from Wednesday to Friday. A draft meeting document seen by Reuters states:

We commit to phase out domestic unabated coal power generation and non-industrial coal-powered heat generation aiming at the year 2030.

New Hope shares are declining today amid the company releasing its quarterly results. Coal sold in the quarter fell by 26.7% compared to the previous quarter.

Unseasonal rainfall and COVID-19 impacts on the workforce led to a “challenging quarter” at the company’s Bengalla operations in NSW. This operation lost 20,354 hours due to weather and labour issues. Despite this, the company reported thermal coal prices hit record highs after the Russian invasion of Ukraine.

In today’s AGM, Coronado Resources also highlighted Australian average index coal prices jumped by 32% in the first quarter of 2022. Spot prices hit a peak of US$670 per tonne in March.

Chairman William Koeck said he expects coal prices to moderate in 2022 but remain higher than historical averages. He attributed this to trade restraints from Russia and China and elevated thermal coal pricing “providing a floor” for metallurgical coal prices.

Coal miner Yancoal entered a trading halt today pending an announcement. As my Foolish colleague Aaron reported, the company share price is frozen pending a potential market transaction. Media speculates parent company Yankuang could be considering a bid for Yancoal.

Share price snapshot

The S&P/ASX 200 Energy Index (ASX: XEJ) has surged 27% in the past year, while it is rising 25% year to date.

Among ASX coal shares, the Whitehaven Coal share price has surged 236% in a year, while New Hope has soared 186%. Yancoal has soared 191% in a year, while Coronado has rocketed 249% and Allegiance is holding steady.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has climbed 0.38% in the past year.

The post Why are ASX coal shares sliding today? appeared first on The Motley Fool Australia.

More reading

• Coronado share price slips despite record coal prices
• Why is the Yancoal share price on ice today?
• ASX 200 midday update: Appen rockets, Westpac super update
• Here’s why the New Hope share price is tumbling 8% on Thursday
• Australia’s renewable energy output could triple by 2030 under Labor. Will that impact these ASX 200 shares?

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 Scott Phillips.

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