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Dramatic share price drops by Gloucester Coal and Aquila Resources prompted the Australian Securities Exchange to issue price queries to both companies.
Aquila Resources on Friday dropped 11.55% and was further eroded on Monday with a 17% fall, Tuesday 15% and yesterday 16% closing at $A4.60.
Aquila said it knew of no reason other than “obvious current volatility affecting markets globally” which would account for the price change.
Gloucester dropped by 13% yesterday down to $A4.49, which was a far cry from its closing price last Thursday of $A7.26.
It also told the ASX it had no explanation for the change other than “current volatility” affecting the markets.
Felix Resources also plummeted by more than 16% yesterday closing at $10.57. Last Thursday the coal producer closed at $A17.14.
Macarthur Coal was down 14.74% to close at $A7 yesterday.
New Hope Corporation was down yesterday by 11.88% to $A3.71.
Whitehaven Coal dropped by more than 15% last Friday, down to $A2.20, slipping further to $A1.80 at close of trade Wednesday.
Centennial Coal was down on Monday by 8.64% to $A3.28.
The news does not seem to be getting any better either, with Chinese steelmakers announcing earlier this week they planned to cut output by about 20% as steel demand weakens.
Reports from Dow Jones Newswires said four of China’s biggest steelmakers planned to cut October output.
In the US coal stocks are also experiencing dramatic falls.
The world’s largest privately owned coal company, Peabody Energy, on Wednesday dipped to a 52-week low of $US27.98 before closing at $31.94. The company, which owns coal mines in both the US and Australia and has interests in China, had reached the lofty heights of $88.69 on June 30.
Arch Coal, which was trading up at $US77.40 in June, fell to its lowest 52-week point on Monday this week at $US21.65. It managed to recover some ground by Wednesday, closing at $US25.11.
Consol Energy also reached its lowest point on Monday at $US29.86, yesterday closing up 11.3% at $36.95. The Appalachian coal miner reached a 52-week high of $119.10 on June 19.
Massey Energy, which reached $US95.70 on June 30, closed at $US24.80 on Wednesday when it reached its 52-week low of $US21.55.
Walter Industries, which also dabbles in financing and homebuilding, closed at $US36.22 on Wednesday. It was trading in July at a high of $111.99.
