MANILA: Dalian coking coal futures climbed to their highest in nearly three months on Wednesday as mining suspensions in China’s Shanxi province stoked worries about the supply of the steelmaking ingredient.
The most-traded September coking coal on China’s Dalian Commodity Exchange was up 3.1% at 1,487 yuan ($206.11) per metric ton at the end of daytime trading at 0700 GMT.
It earlier hit 1,488.50 yuan, its highest since April 25. Shanxi LuAn Environmental Energy Dev Co said on Tuesday its mining unit halted production on July 16 after an accident caused one death.
Two coal mines in Shanxi, China’s major coal mining hub, were ordered to suspend production on Tuesday for “rectification due to safety accidents”, according to Huatai Futures. It did not identify the mines. “Many coal enterprises and regions carried out safety inspections, and some coal mines stopped production”, with the resumption of operations uncertain, Huatai analysts said in a note. Coke, the processed form of coking or metallurgical coal, also rose, with Dalian’s most-active September contract climbing as much as 2.2% to its highest since April 24.
Iron ore prices, however, fell as traders assessed demand prospects amid a faltering economic recovery in top steel producer China, while waiting for Beijing’s policy measures to shore up activity. Benchmark September iron ore on the Dalian exchange dipped 0.6% to 834 yuan ($115.60) per metric ton.
On the Singapore Exchange, the steelmaking ingredient’s most-traded September contract shed 1% to $110.50 per metric ton. Adding to the cautious tone, iron ore miner Rio Tinto flagged concerns about a global economic slowdown and said its production should be at the upper end of its expectations for the year.
Comments
Comments are closed.