BEIJING: Chinese coking coal futures closed up 6% at a record high on Wednesday, as falling imports and intensifying safety investigations fuelled concerns over supply of the steelmaking ingredient. China's November coal imports came in at 11.67 million tonnes, down 15% from October and almost 44% from the same month a year earlier, customs data showed this week.
Provincial governments in Shanxi, Shaanxi and Henan have stepped up safety production inspections on coal mines after a spate of recent accidents. The most-traded coking coal on the Dalian Commodity Exchange, for January delivery, jumped 6% to 1,620 yuan ($248.34) per tonne at close. It surged as much as 6.8% earlier in the session.
Coke futures on the Dalian exchange rose 1.8% to 2,608 yuan per tonne. Benchmark iron ore futures were unchanged from the previous session at 919 yuan per tonne. Spot prices of iron ore with 62% iron content for delivery to China, meanwhile, increased by $3 to $146.5 per tonne on Tuesday, the highest since March 12, 2013, according to SteelHome consultancy.
Construction rebar on the Shanghai Futures Exchange ended 1.6% higher at 3,989 yuan per tonne. Hot-rolled coil rose 1.4% to 4,275 yuan a tonne. Shanghai stainless steel, for February delivery, inched up 0.4% to 13,525 yuan a tonne. China's factory gate prices fell in annual terms for the tenth consecutive month in November but at a slower-than-expected rate, while consumer prices declined for the first time in over a decade, official data showed on Wednesday.
Australia's Fortescue Metals Group sees strong iron ore demand next year on solid Chinese demand as well as a post-COVID-19 recovery in other markets, Director of Sales and Marketing Danoy Goeman said on Wednesday.
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