Insights

The Whitehaven (ASX:WHC) share price is down 7% today. What’s going on?

Here’s what could be bringing down Whitehaven’s shares today…
The post The Whitehaven (ASX:WHC) share price is down 7% today. What’s going on? appeared first on The Motley Fool Australia. –

Today isn’t a good day on the ASX for the Whitehaven Coal Ltd (ASX: WHC) share price. The coal miner’s stock is tumbling on Thursday, alongside the price of Chinese thermal coal.

At the time of writing, the Whitehaven share price is $2.62, 7.24% lower than its previous close.

Let’s take a look at what might be weighing on the coal miner’s stock today.

Whitehaven share price falls alongside Chinese coal futures

The Whitehaven share price is slipping today amid reports Chinese thermal coal futures plummeted 10% on Wednesday and another 13% in night trade.

The country’s coal futures have now reportedly fallen 47.8% since 19 October.

There are a number of happenings that have potentially weighed on the price of coal in China.

Firstly, according to reporting by Reuters, China’s National Development and Reform Commission is cracking down on unlicensed coal storage sites. The commission believes removing unapproved storage locations will make it harder for illegal traders to hoard the commodity.

The Global Times reports the increased scrutiny has seen traders desperate to sell and minimise their losses amid the market slump.

Additionally, coal pricing in China is facing scrutiny by the commission which is planning to intervene. The commission reportedly believes pricing data is being falsified by energy index providers.

Another report by Reuters states Chinese coal traders are being left in the dark as data that helps them price the commodity is being fabricated or hidden from the public.

All in all, coal prices in China are cooling, putting pressure on the S&P/ASX 200 Index‘s (ASX: XJO) largest pure play coal miner. The Whitehaven share price is now around 19% lower than it was this time last month.

The dip comes after the company announced it expects record-high coal prices will see it boasting “significant cash generation” soon. Whitehaven likely plans to use such cash to help realise its goal of being debt-free by early next year.

The post The Whitehaven (ASX:WHC) share price is down 7% today. What’s going on? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Whitehaven Coal right now?

Before you consider Whitehaven Coal, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Whitehaven Coal wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

These 3 ASX 200 shares are topping the volume charts this Monday

These were the worst performing ASX 200 shares last week

These 3 ASX 200 shares are topping the volume charts this Friday

These 3 ASX 200 shares are topping the volume charts on Thursday

Whitehaven Coal (ASX:WHC) share price falls as China intervenes in coal market

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!