✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

China coking coal, coke prices extend losses on profit taking

Published 27/12/2016, 03:51 pm
© Reuters.  China coking coal, coke prices extend losses on profit taking

* Iron ore snaps 9-day losing streak

* Concerns about China's economic growth linger

By Meng Meng and Josephine Mason

BEIJING, Dec 27 (Reuters) - Chinese coke and coking coal futures sank for a fourth straight session, as speculative investors continued to take profits from the weeks-long rally in steelmaking raw materials amid concerns about demand as Beijing cracks down on excess steel capacity.

Iron ore eked out small gains, breaking a nine-day losing streak that had knocked prices to a one-month low on Monday. Steel rebar, used in construction, was flat to slightly higher.

Concerns about economic growth in the world's top commodities market and efforts by the government to rein in its red-hot property market continued to weigh on sentiment.

Adding to fears about broader declining consumption, steel mills typically curb their output during the quieter winter months and ahead of the Chinese Lunar New Year holiday at the end of January.

"Coke spot prices tumbled sharply today on decreasing purchases from steel mills," said Zhang Min, coal analyst at China Sublime Information Group.

"A big fall on the spot market has triggered more selling of coke futures today, led by institutional investors who are holding large positions."

The most-active coking coal futures DJMcv1 on the Dalian Commodity Exchange were down 2.7 percent at 1,169.50 yuan ($168.28) per tonne, after falling to as low as 1,143 earlier in the session, its lowest since Oct. 18.

Coke DCJcv1 fell 3.07 percent to 1,530.50 yuan ($220.23) per tonne. Earlier in the session, coke was as low as 1,495 per tonne, its lowest since Nov. 3.

Steel plants in Tangshan, in Hebei province, which accounts for about one-fifth of China's steel output, are operating at around 70 percent to 74 percent of capacity, down from 80 percent in October, Zhang said, citing Sublime Group data.

Iron ore on the Dalian Commodity Exchange DCIOcv1 was up 0.92 percent at 550.50 yuan ($79.21) a tonne, while the most-active rebar contract for May delivery on the Shanghai Futures Exchange SRBcv1 rose 0.03 percent to 2,928 yuan ($421.31) per tonne. ($1 = 6.9497 Chinese yuan renminbi) (Editing by Christian Schmollinger)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.