Chinese coking coal futures follow spot prices higher and exceed 14%
BEIJING / MANILA, Nov. 3 (Reuters) – Chinese coking coal futures rose for the first time in six trading sessions on Wednesday, jumping more than 14% following a large swing in a supply context tight, while coke prices also jumped.
“Steel production costs are now very high. Factories and coking plants are wondering how much room is left for further adjustment between spot and futures prices,” said Wang Yingwu, analyst at Huatai Futures at Beijing, adding that profits from coking plants were also slim now.
Current coke prices are about 1,100 yuan ($ 171.90) per tonne higher than the January futures contract, while spot coking coal prices are also several hundred yuan higher, according to a note. of Huatai Futures.
The most actively traded coking coal futures contracts on the Dalian Commodity Exchange climbed 14.1% to 2,507 yuan ($ 391.80) per tonne, the largest percentage change since November 22, 2016. They ended up 12.7% to 2,477 yuan per ton.
Dalian exchange coke futures rose 8% to 3,215 yuan per tonne at the close, after gaining up to 9.5% earlier in the session.
Dalian stock exchange benchmark iron ore futures fell 0.4% to 590 yuan per tonne. 62% spot iron ore for delivery to China fell $ 5 to $ 102 a tonne on Tuesday, according to data from consulting firm SteelHome.
Steel prices on the Shanghai Futures Exchange were mixed.
Construction rebar fell 0.1% to 4,385 yuan per tonne while hot-rolled coils used in manufacturing rose 1.6% to 4,782 yuan per tonne.
Shanghai stainless steel futures, for December delivery, fell 0.9% to 18,565 yuan per tonne.
($ 1 = 6.3986 yuan Chinese renminbi)
Reporting by Min Zhang and Enrico Dela Cruz; Editing by Rashmi Aich
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