Evraz Group SA, OAO Mechel (MTL:US), and OAO Raspadskaya, three of Russia's biggest coal producers, plunged as a drop in prices raised concern that the companies' earnings growth will slow.
Moscow-based Evraz declined $10.49, or 22 percent, at 3:19 p.m. in London trading, the biggest drop in nine months. Mechel (MTLR) fell $3.51, or 17 percent, to $17.21 at 10:25 a.m. in New York. Raspadskaya fell 8.25 rubles (33 U.S. cents), or 6.6 percent, to 116.74 rubles at the close in Moscow.
``It has to do with them being expensive on a price-to- earnings basis relative to a lot of other stocks in the long run,'' said Michael Teagarden, a sales trader with UBS AG in Moscow. ``People are also concerned about the earnings going down since there are obvious problems building things right now and this could affect steel prices.''
Benchmark European coal derivatives fell for a fifth consecutive session to an almost two-week low. The Baltic Dry Index (BDIY), a measure of shipping costs for commodities, declined for a sixth session to more than a two-year low.
Evraz, which produces all the coal for its steelmaking business, owns 40 percent of Raspadskaya.
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