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Dalian coking coal futures rise to over 2-month high as supply remains tight

21 Jul 2021

Futures for steelmaking ingredients on China’s Dalian Commodity Exchange rose on Tuesday, with coking coal jumping more than 3% amid supply shortages.
 
The most-traded coking coal futures on the Dalian bourse DJMcv1 for September delivery rose as much as 3.2% to 2,098 yuan ($323.54) per tonne, the highest since May 13. They ended up 2.0% at 2,074 yuan per tonne.
 
Coke futures DCJcv1 advanced 2.6% to 2,738 yuan per tonne.
 
“Capacity utilisation rates of coking firms are rising, but haven’t recovered to the level before the output controls and are lower than the same period in previous years,” analysts with SinoSteel Futures wrote in a note.
 
China’s coke output in June fell 3.2% to 38.91 million tonnes compared with the same month in 2020, data from the statistics bureau showed.
 
Benchmark iron ore futures on the Dalian exchange DCIOcv1 ended up 0.3% at 1,233 yuan per tonne.
 
“Despite the current supply tightness in iron ore, particularly from Australia, we calculate prices are still fundamentally over-valued compared with the highest cost marginal producer on the cost curve,” said Atilla Widnell, managing director at Navigate Commodities in Singapore.
 
Spot prices of ore with 62% iron content for delivery to China SH-CCN-IRNOR62 dipped 50 cents to $222.5 per tonne on Monday, according to SteelHome consultancy.
 
Source : https://www.hellenicshippingnews.com