Home / Commodities / Commodity News / Dalian coking coal, coke extend rally; iron ore up over 6%

Dalian coking coal, coke extend rally; iron ore up over 6%

Dalian coking coal and coke futures surged to record highs on Tuesday, extending a blistering rally fuelled by concerns about the supply of steelmaking ingredients in top steel producer China.

Coking coal’s most-traded contract on China’s Dalian Commodity Exchange DJMcv1 ended daytime trading 5.8% higher at 2,465 yuan ($380.50) a tonne, after earlier hitting an all-time high of 2,571 yuan.

Coke DCJcv1 was up 6.5% at 3,150.50 yuan a tonne, after touching a life high of 3,267.50 yuan.

Prospects of prolonged tightness in metallurgical or coking coal supply in China have underpinned prices, driving the cost of coke – the processed form of coking coal – higher.

“Some coke companies have already faced losses and have actively restricted production,” Sinosteel Futures analysts said in a note.

Coke is used as a reducing agent in melting iron ore, the key steelmaking ingredient.

Benchmark iron ore futures rebounded, with Dalian prices extending overnight gains as easing worries over the COVID-19 outbreak in China helped calm nerves after several days of sell-offs driven by demand concerns.

The most-traded Dalian iron ore for January 2022 delivery jumped 6.2% to 817.50 yuan a tonne, bouncing off a 7-1/2-month low hit on Friday.

Iron ore’s most-active September contract on the Singapore Exchange SZZFU1 was up 8.2% at $146.90 a tonne, as of 0714 GMT.

Spot iron ore for delivery to China SH-CCN-IRNOR62 steadied at $140.50 on Monday, the lowest since December, SteelHome consultancy data showed.

Construction steel rebar on the Shanghai Futures Exchange SRBcv1 climbed 2.4%, while hot rolled coil SHHCcv1 gained 2.5%. Stainless steel SHSScv1 added 0.4%.

Spot rebar prices have rebounded after recent declines as market sentiment showed signs of settling down now that the consumption peak season is around the corner, Mysteel consultancy reported.
Source: Reuters (Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu and Rashmi Aich)

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping