Chinese coking coal futures jump as mills restock

2018-01-03 13:56:00 Price,  Coking Coal,  futures reuters.com

Chinese coking coal futures extended gains on January 3 as steel mills accelerated restocking of the raw material on concerns that snows forecast for northern regions could disrupt transportation.


Coking coal futures on the Dalian Commodity Exchange rose as much as 3% to 1,372 yuan/t ($210.90/t) in early trading.


"The snowy weather is expected to hit more northern regions, which would interrupt the transportation of coal and promote mills to increase buying ahead of bad weather," said a trader in Shanxi.


Some coke producers in Shanxi province, China's top coke producing region, have been ordered to raise production to increase coke oven gas that can be turned into liquefied natural gas, also boosting appetite for coking coal.


Among other steel making raw materials, iron ore edged up 0.7% to 543.5 yuan and coke rose 1.4% to 2,033.5 yuan/t by 0221 GMT.


The most active rebar on the Shanghai Futures Exchange inched up 0.6% to 3,866 yuan/t, but seasonal weakness is expected to weigh on prices.


"Physical market remains soft and transactions are tepid. Prices are expected to weaken further," said a futures broker in Shanghai.


Iron ore for delivery to China's Qingdao port .IO62-CNO=MB rose $2.10 to $74.71/t on January 2 from December 29, according to Metal Bulletin.


(Writing by Alex Guo   Editing by Jessie Jia)
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