Coal demand dampens and share prices plunge in mild winter
Terracom shares were down more than 5 per cent this morning and New Hope wasn’t far behind as the price of coal on global markets fell and Europe experienced a milder than normal winter.
Two Qld coal mines are at the centre of the dispute (file photo)
Shares in other coal miners also felt the heat. Stanmore Resources was also down more than 3 per cent. Whitehaven shares were down 2.6 per cent. Yancoal and Coronado were also down.
Coal prices have dropped sharply in recent weeks as fears subside over the impacts of the European winter and the continued war in Ukraine.
Newcastle coal’s benchmark price was down 7 per cent overnight and it was now trading below $US400 a tonne, well down on its 52-week peak at $US423 a tonne. However, even at that price, coal companies were well ahead of normal pricing.
It comes as China appears to be nearing a return to buying Australian coal. None of the Queenslander producers have reported any sales to China.
