AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

BEIJING: Chinese coking coal futures surged more than 8% on Wednesday, boosted by improving sentiment in the property market and expectations of higher steelmaking demand at mills, although analysts are flagging risks on weak fundamentals.

Financial regulators have told some banks to issue more loans to property firms for project development, in efforts to marginally ease liquidity strains across the industry, according to sources.

“The ferrous sector is now repairing losses from the previous period on signs of easing stress in the real estate market,” said Cheng Peng, an analyst with SinoSteel Futures.

Meanwhile, the industry expects increase in steel production in the coming months after curbing its output more than what authorities required, which could benefit demand for raw materials, Cheng also said.

The most-traded coking coal futures on the Dalian Commodity Exchange, for January delivery, powered as much as 8.6% to 2,077 yuan ($325.04) per tonne. They were up 7.1% to 2,048 yuan a tonne as of 0155 GMT.

Coke futures on the Dalian bourse jumped 2.2% to 2,974 yuan per tonne. Benchmark iron ore futures extended gains after hitting a 10% daily trading limit on Tuesday and were up 2.1% to 595 yuan a tonne.

Still, analysts are wary of fluctuations in the market.

“Government’s efforts in ensuring coal supplies have brought fundamental impact on its supply and demand,” analysts with Huatai Futures wrote in a note, adding that liquidity for coking coal and coke are insufficient now.

Spot prices of iron ore with 62% iron content for delivery to China gained $2 to $97.5 a tonne on Tuesday, data from SteelHome consultancy showed.

Construction rebar on the Shanghai Futures Exchange rose 1.7% to 4,437 yuan a tonne. Hot-rolled coils increased 2% to 4,549 yuan per tonne and stainless steel futures were up 2.2% to 17,890 yuan a tonne.

Comments

Comments are closed.