MANILA: Dalian coking coal futures rose on Tuesday to their highest level in more than two months as market participants welcomed the new year feeling optimistic about demand prospects for the steelmaking input in top steel producer China.
The most-traded May coking coal contract on China’s Dalian Commodity Exchange surged as much as 7.2% to 2,370.50 yuan a tonne on the first trading day of the 2022, its strongest since Oct. 28.
Coke, the processed form of coking coal and which is used as the primary reducing agent of the main steelmaking raw material iron ore, rose as much as 4.8% to 3,047 yuan a tonne, its highest since Dec. 27.
“The price of coking coal is firm, supporting coke. In the short term, steel mills will gradually resume production, which is good for coke demand,” Sinosteel Futures analysts said in a note.
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