Coal Stocks Surge as Prices Mark Strongest Weekly Gain Since January

March 10, 2025 05:09 PM AEDT | By Team Kalkine Media

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Coal Stocks Surge as Prices Mark Strongest Weekly Gain Since January — Image source: shutterstock

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Highlights

Coal prices recorded their second-best week of 2024, supporting mining stocks.

Newcastle coal futures rose 1.2% last week, marking the strongest gain since January.

Major coal miners, including Yancoal (ASX:YAL) and Whitehaven Coal (ASX:WHC), posted notable gains.

Coal stocks gained momentum at the start of the week, tracking a strong uptrend in global coal prices. The benchmark Newcastle coal futures contract advanced 1.2% last week, marking its best performance since January. This upward trend in coal prices, despite some minor retracements on Friday, provided a favorable environment for coal miners on the Australian Stock Exchange (ASX).

Monday’s session saw significant movement in coal stocks, with Yancoal (ASX:YAL) climbing 2.4% and Whitehaven Coal (ASX:WHC) rising by 3.3%. New Hope Corporation (ASX:NHC) also edged higher, posting a modest 0.5% gain. These performances reflected the strong demand for coal, which has remained a key factor influencing market sentiment.

The recent uptick in coal prices is attributed to various factors, including supply chain disruptions, weather-related production constraints, and sustained demand from key energy markets. Additionally, a resurgence in industrial activity and power generation requirements have kept coal demand resilient, further supporting price stability.

Newcastle coal futures serve as a key benchmark for global thermal coal pricing. The latest increase in coal futures indicates a positive shift in market sentiment, benefiting producers that have maintained a steady output. Industry analysts continue to monitor macroeconomic conditions and policy changes that could influence long-term coal demand and pricing trends.

The ASX has seen fluctuations in mining and energy stocks in recent months, driven by global commodity trends and geopolitical influences. Coal miners have remained in focus as investors assess market conditions and production output levels. The recent rally in coal prices has provided a boost to the sector, signaling a potential continuation of upward momentum if supportive factors persist.

Market participants are also keeping an eye on energy policies and export trends, as these can impact future price movements. With energy demand playing a crucial role in shaping the commodity landscape, coal stocks remain a sector to watch in the near term.

As the week progresses, attention will be on how coal prices sustain their recent gains and whether further momentum can drive additional growth in mining stocks.

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