Chinese coking coal pulls out after government pledges to investigate prices
Chinese coking coal futures backed off from early gains and recorded the first weekly losses in a month after Beijing said it would look at coal prices and quell speculation.
The Chinese state planner said on Friday afternoon that he had jointly launched a coal price investigation with the market regulator and would crack down on speculation and hoarding.
The most traded coking coal futures on the Dalian Stock Exchange, for September delivery, jumped 4.3% in the morning session to a more than a month high and closed down 1 , 4% to 1,955 yuan ($ 303.48) per ton. The contract fell 1.4% over the week.
Other steel ingredients also ended lower.
Benchmark iron ore futures fell 0.2% to 1,203 yuan per tonne.
Coke futures on the Dalian Stock Exchange fell 0.9% to 2,694 yuan per tonne.
Steel prices on the Shanghai Futures Exchange, however, were traded higher, although data from consulting firm Mysteel showed apparent demand for steel products fell 4.8% in June 17 by compared to the previous week.
“Despite the historic trend for steel prices to cool down in June when construction activity generally slows down in China, prices have continued to rise due to investor speculation on a supply crunch following the government efforts to reduce steel production, âFitch Solutions wrote in a note. , adding that they don’t expect production to slow down this year.
Structural steel rebar, for delivery in October, edged up 0.2% to 5,061 yuan per ton.
Hot-rolled coils rose 0.7% to 5,347 yuan per ton.
Shanghai stainless steel, for July delivery, rose 0.4% to 16,155 yuan per ton.
Source: Reuters (Report by Min Zhang and Dominique Patton; edited by Shailesh Kuber)