Dalian Coking Coal Futures Surge 5% On Supply Crunch

Chinese coking coal futures closed 5% higher on Wednesday, rising for a second straight session on supply concerns as safety inspection by authorities halted production at some mines.
The most-traded coking coal futures contract on the Dalian Commodity Exchange , for September delivery, ended at 2,037 yuan ($314.24) per tonne.
“Due to government probes after a raft of mine accidents recently, some mills are facing supply shortages for the material,” said Zhuo Guiqiu, an analyst with Jinrui Futures, adding coking coal imports had not improved as well.
Coking coal futures prices are also at a discount to spot prices, which are at about 2,200 yuan per tonne, Zhuo said.
Tracking the jump in coal futures, coke prices surged 5.6% to 2,784 yuan a tonne.
Benchmark iron ore futures on the Dalian bourse rebounded after three straight sessions of losses, rising 4.0% to 1,173 yuan per tonne by close.
Steel prices on the Shanghai Futures Exchange also gained despite a steel association warning on Tuesday that the sector was facing weak seasonal demand.
Construction rebar , for October delivery, rose 1.4% to 4,934 yuan a tonne. Hot-rolled coils , used in cars and home appliances, inched up 0.7% to 5,153 yuan per tonne.
The August contract for Shanghai stainless steel futures was up 1.7% at 16,365 yuan a tonne.
China’s state planner said on Wednesday that it and the market regulator recently sent teams to various areas to look into commodities prices and supplies and would learn about mid- and downstream companies’ situations.