Chinese coking coal futures jump as mills restock

Date: Jan 05, 2018
Chinese coking coal futures extended gains on Wednesday 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 percent to 1,372 yuan ($210.90) a tonne before closing at 1,352 yuan a tonne, up 2 percent.

“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.

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