China coking coal futures gain on tight supplies, restocking demand
Chinese coking coal futures extended gains for a fourth session on Tuesday as supply concerns rose after coal mine inspections and falling imports, with restocking demand at coking plants propping up prices further.
Analysts with GF Futures noted that safety inspections at coal mines in Shanxi province are strict, while some production suspension in Inner Mongolia to curb emissions also affected supplies of coking coal.
"Imports are also relatively tight now," said a Shandong-based trader. "Daily imports of coking coal from Mongolia now is at merely one-third to half of pre-holiday (Spring Festival) level due to the coronavirus."
Meanwhile, coking plants are replenishing stocks after consuming their holiday inventory, the trader added.
The most-actively traded coking coal futures on the Dalian Commodity Exchange, for May delivery, rose 2.8% to 1,663 yuan ($253.11) a ton as of 0330 GMT.
Dalian coke futures inched up 0.1% to 2,278 yuan a ton.
Benchmark iron ore futures, however, fell 2.0% to 1,086 yuan per ton.
Steel prices on the Shanghai Futures Exchange were also mixed.
Construction rebar edged 0.02% lower to 4,970 yuan a ton.
Hot-rolled coil futures, used in cars and home appliances, gained 1.5% to 5,368 yuan a ton.
Shanghai stainless steel futures jumped 1.7% to 14,700 yuan per ton.
FUNDAMENTALS
* Spot prices of iron ore with 62% iron content for delivery to China <SH-CCN-IRNOR62> increased by $6 to $168 a ton on Monday from the previous trading session, according to SteelHome consultancy.
* China's top flat steel producers are primed for profit from a recovery in global manufacturing and goods demand in 2021, as well as from an emissions-cutting drive that will likely knock out high-cost competitors. ($1 = 6.5703 Chinese yuan renminbi) (Reporting by Min Zhang and Shivani Singh; editing by Uttaresh.V)
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