Chinese Coking Coal and Coke Futures Recover on Supply Concerns
Coke and coking coal futures in China on Wednesday as worries over supply of the steelmaking ingredients intensified due to the coronavirus epidemic. The most-traded coke contract on the Dalian Commodity Exchange rose 1.2% to CNY 1,788 a tonne, up 0.3% and the most-active Dalian coking coal contract was up 1.7% at CNY 1,209 a tonne, up 0.6%.
The coronavirus epidemic has also prevented factories from resuming operations after the Lunar New Year holiday that ended on Sunday. Also, due to the shortage of raw material supply, coke companies have stopped production in a wide range. Coke stocks at steel mills and ports have fallen, pushing spot prices higher. Spot prices of coking coal, the main raw material to produce coke, have also risen as some coal mines in China struggle to restart operations
Source : Strategic Research Institute