UPDATE 1-Dalian Coking Coal Futures Peak Over 2 Months As Supply Remains Tight
(Updates with closing prices)
BEIJING, July 20 (Reuters) – Steel ingredients futures on China’s Dalian Commodity Exchange rose on Tuesday as coking coal jumped more than 3% due to supply shortages.
The most widely traded coking coal futures on the Dalian Exchange for September delivery rose 3.2% to 2,098 yuan ($ 323.54) per tonne, the highest since May 13. They ended up 2.0% to 2,074 yuan per tonne.
Coke futures rose 2.6% to 2,738 yuan per tonne.
“Coke oven capacity utilization rates are on the rise, but have not returned to pre-production controls and are lower than the same period in previous years,” SinoSteel Futures analysts wrote in a report. note.
China’s coke production in June fell 3.2 percent to 38.91 million tonnes from the same month in 2020, according to data from the Bureau of Statistics.
Dalian iron ore benchmark futures contracts ended up 0.3% at 1,233 yuan per tonne.
“Despite the current tightening in the supply of iron ore, particularly from Australia, we believe prices are still fundamentally overvalued relative to the marginal producer at the highest cost on the cost curve,” said Atilla Widnell, Managing Director of Navigate Commodities in Singapore.
Spot price of ore containing 62% iron for delivery to China SH-CCN-IRNOR62 dipped 50 cents to $ 222.5 a tonne on Monday, according to consulting firm SteelHome.
* Steel rebar on the Shanghai Futures Exchange for October delivery fell 0.2% to 5,601 yuan per tonne.
* Hot-rolled coil futures fell 0.6% to 5,968 yuan per tonne.
* Shanghai stainless steel futures for August delivery fell 1.6% to 18,490 yuan per tonne.
* BHP Group Ltd on Tuesday reported annual iron ore production near the top of its forecast range, but a 4% drop in fourth-quarter production.
* Brazilian miner Vale SA said it produced 75.87 million tonnes of iron ore in the second quarter, up 1.3% from the previous quarter.
$ 1 = 6.4846 yuan Chinese renminbi Report by Min Zhang and Shivani Singh; edited by Vinay Dwivedi