China iron ore, coke futures slump more than 2% on cloudy demand outlook

reuters.com Price,  futures 2019-10-15 13:48:18

Benchmark Dalian iron ore and coke futures slumped more than 2% in late trade on October 14 following growing concerns about demand for the steelmaking raw materials, amid China's renewed efforts to curb pollution by restricting steel mills operations.


Adding to the worries, industry data released on October 14 showed auto sales in China fell for a 15th consecutive month in September, dampening hopes for a second-half turnaround in the world's largest auto market.


Dalian Commodity Exchange's most-traded iron ore contract, with January 2020 expiry, ended down 2.4% at 638.50 yuan/t ($90.41/t).


"Traders have been wary of the impact of ongoing restrictions on steel mills in China," said Daniel Hynes, senior commodity strategist at ANZ.


China's top steelmaking city of Tangshan issued new anti-pollution restrictions on mill operations, effective from October 10-31, according to industry websites.


Another Chinese city, Linfen, has also ordered steelmakers to stop sintering and pelletizing operations from October 10, Hynes said.


As fresh steel production restrictions may curb iron ore demand in top steel producer and consumer China, market participants are also keeping an eye on supply-side issues.


Iron ore miner Vale SA is set to release its quarterly output report this week, which may shed light on its progress to restart operations following a deadly dam disaster earlier this year, Hynes said.


The Brazilian mining regulator has shut 54 dams so far in the second half of 2019 due to lack of certification, including 17 owned by Vale, he said. Vale's reduced iron ore output has tightened global supply, pushing prices to five-year peaks in recent months.


China's spot 62% iron ore benchmark SH-CCN-IRNOR62, which settled at $92.5/t over the weekend, is still up 15% this year despite a 27% slump from its July 3 peak of $126.5 as supply worries eased.


(Writing by Emma Yang  Editing by Jessie Jia)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 China's coke futures close lower 2020-02-19

China's coke futures closed lower in the daytime trading of February 19 on the Dalian Commodity Futures. The most-traded contract with May expiry closed at 1,842 yuan/t, down 0.7% from th

2 Russia Dec coal exports decline 1.53% YoY, customs data 2020-02-19

Russia posted a year-on-year decline of 1.53% in coal exports in December 2019, according to customs data, mainly dragged down by decreased buys from China. The country shipped a total 18

3 China Coal Daily Track (Feb 19) 2020-02-19

Thermal coal Production area Trucks flooded into coal mines in Shaanxi's Yulin after the city withdrew check points on roads. At least four mines increased their prices by 10-30 yuan/t on a si

4 Indonesian thermal coal holds support from rains despite China's curtailed demand 2020-02-19

Indonesian thermal coal held steady for sessions despite a marked decrease in Chinese demand, as the material remained supported by local heavy rains that have caused prolonged supply woes.

5 Thermal coal supply remains tight at N China ports despite quickened mining resumption 2020-02-19

Thermal coal shipments to China's northern transfer ports remained low although more mines resumed work in response to the government's call. The National Energy Administration said on Fe

6 China Coal Jan commercial coal output rises 7% YoY 2020-02-19

China Coal Energy Co., Ltd, a listed arm of China National Coal Group, registered a 7% year-on-year rise in commercial coal production in January, the company said in an announcement on February 18.

7 China's Ordos sees 93 coal mines restart production, capacity hits 1/3 2020-02-19

China's major coal production city Ordos in Inner Mongolia reported a total 93 coal mines restart operations as of February 17, according to Ordos Energy Administration. Capacity utilizat

8 China resumes over 70% coal production capacity amid epidemic 2020-02-19

China has resumed 70.2% of its coal production capacity with output recovering steadily amid the fight against the novel coronavirus epidemic, the National Energy Administration (NEA) said on February

9 China will not face tight power supply amid coal output recovery 2020-02-18

There's slim chance for China to encounter tight electricity supply in the short run, thanks to accelerated recovery of coal production to ensure stable operation at power plants. A

10 China Coal Daily Track (Feb 18) 2020-02-18

Thermal coal Production area While there are more coal mines that have come back to work, supply remained tight at northern production areas due to labor shortage. Some Shaanxi-based miners

Most Read Articles

1 Worries creep up in China's spot thermal coal market 2020-02-14

Worries for a possible retreat crept up in China's spot thermal coal market after prices notched a four-month high, owing totapering buying interest although supply shortage continued biting.

2 MEC halts coal exports to China after border shut 2020-02-14

Mongolia Energy Corporation (MEC) said it had to suspend coal exports to China until early next month, as the government had decided to close all border crossings with China to prevent the novel coron

3 Bearishness prevails in Chinese import thermal coal market 2020-02-14

With clear increases in the recent two weeks, prices of import thermal coal cargoes have been close to the upper limit of Chinese buyers' acceptance. As buying interest is gradually fading, most marke

4 China's import thermal coal trading in a standoff amid uncertainty 2020-02-18

Trading activity entered a lull in Chinese import thermal coal market at the beginning of this week, as Chinese end buyers temporarily stoppedseeking cargoesfrom import market amid growing uncertainti

5 Weekly global coal market news summary (Feb 10-Feb 14) 2020-02-14

Bearishness prevails in Chinese import thermal coal market With clear increases in the recent two weeks, prices of import thermal coal cargoes have been close to the upper limit of Chinese buyer

6 China thermal coal prices firm up in early-Feb, NBS 2020-02-14

Prices of China's thermal coal strengthened in early-February. Some coal grades inched up while some remained stable compared with ten days ago, showed data from the National Bureau of Statistics (NBS

7 China's import thermal coal outlook clouded by recovering supply 2020-02-17

China's import thermal coal market outlook was clouded by quickened resumption of domestic coal production, which could dent buying demand for overseas coal while vessels from China face 14-day quaran

8 Coronavirus outbreak drives steel product prices down in China in early-Feb 2020-02-14

China saw its steel product prices down in the first ten days of February, as downstream demand was further delayed by the extended holiday to fight the fast-spreading coronavirus. Specif

9 Chinese thermal coal traders concerned about price drops on supply recovery 2020-02-17

Chinese thermal coal traders were concerned that prices of the fossil fuel may lose ground at northern transfer ports in the near term, with more coal mines restarting operation in key production area

10 Coal mines speeding up to reopen, virus impacts on supply abates, NEA 2020-02-17

A quick comeback of coal mines has been seen last week from suspension amid the virus outbreak, according to sources with the National Energy Administration. Impacts by restrictions against the virus

Scan to download sxcoal.com mobile APP

X