BEIJING/MANILA: China’s coking coal futures dived more than 9% on Tuesday, extending losses for a third straight session amid increasing coal supply and tepid demand at coking plants.
The country’s October coal production jumped 4% on an annual basis to 360 million tonnes and is still rising, securing stable supply of the material for the winter-spring period, an official from the National Development and Reform Commission said at a press conference on Tuesday.
Meanwhile, customs clearance for imported coking coal through the Ganqimaodu customs in Inner Mongolia has been increasing, according to a GF Futures note.
The most actively traded coking coal futures on the Dalian Commodity Exchange, for January delivery, plunged as much as 9.4% to 1,867 yuan ($292.76) per tonne. They ended down 9% at 1,874 yuan, the lowest closing price since July 20.
Coke prices on the Dalian bourse fell 4.3% to 2,685 yuan a tonne.
“Steel mills in many places have stepped up to lower coke purchasing prices,” analysts with SinoSteel Futures wrote in a note, adding both supply and demand for coke have dropped significantly.
Benchmark iron ore futures fell 1.1% to 541 yuan a tonne. Spot 62% iron ore for delivery to China was flat at $90 a tonne on Monday, according to SteelHome consultancy.
Construction-used rebar on the Shanghai Futures Exchange closed down 1.5% at 4,128 yuan a tonne. Hot-rolled coils declined 2.2% to 4,371 yuan per tonne.
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