New Hope share price dives 9% as ASX 200 coal stocks get hit hard

The New Hope Corp Ltd (ASX: NHC) share price is down 8% at the time of writing, having earlier posted losses of more than 9%.

The S&P/ASX 200 Index (ASX: XJO) coal stock closed yesterday trading for $5.81 per share. Shares are currently swapping hands for $5.36 apiece, having recovered from an intraday low of $5.24.

But it’s not just the New Hope share price taking a beating today.

Rival ASX 200 coal stock Whitehaven Coal Ltd (ASX: WHC) is down 4.4%. And Yancoal Australia Ltd (ASX: YAL) has dropped 6.7% at this same time.

So, what’s going on?

Why are ASX 200 coal shares tumbling today?

The New Hope share price and the other ASX 200 coal stocks are under pressure today from several fronts.

Firstly, the price of coal, which climbed earlier this week, is sliding lower.

According to data from CommSec, Coal Nymex futures are down 3.4% overnight to US$142.65 per tonne. That’s down 9.1% from the US$157.00 per tonne quoted on Tuesday when Coal Nymex futures had leapt 5.3% overnight.

The surge in the coal price earlier in the week helped drive the New Hope share price 6.4% higher across Monday and Tuesday’s trading. But with coal prices retracing, the ASX 200 coal miner is now down almost 13% from Tuesday’s close.

What else is pressuring the New Hope share price?

Investors may be hitting the sell button amid news that Indian-based coal giant Adani Group is looking to offload its coal shipments at discounted prices.

According to anonymous sources cited by Bloomberg, Adani is “offering to sell several coal shipments from Australia and Indonesia at discounts”.

Those discounts were said to be roughly 4% below Asia’s price benchmarks.

Also potentially impacting the New Hope share price, The Australian reported that major shareholder GQG Partners had sold $336 million of Whitehaven Coal shares for $7.90 apiece.

That’s a steep discount to Tuesday’s closing price of $8.66 per share. But more than 3% above the current Whitehaven share price of $7.66.

New Hope share price snapshot

With today’s precipitous intraday fall factored in, the New Hope shares have fallen into the red for 2023.

But, as you can see in the chart below, the ASX 200 coal stock remains up an impressive 115% over the past 12 months.

The post New Hope share price dives 9% as ASX 200 coal stocks get hit hard appeared first on The Motley Fool Australia.

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More reading

• This ASX All Ords fundie just dumped $300 million of Whitehaven shares. Is this a red flag?
• 2 ‘high quality’ ASX 200 shares to navigate a turbulent 2023: expert
• Here are the top 10 ASX 200 shares today
• Why did ASX 200 coal shares have such a top run on Tuesday?
• Why Beach Energy, Medibank, Pushpay, and Whitehaven Coal shares are rising

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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