👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

China coking coal futures soar as import limit report stirs supply fears

Published 29/06/2017, 02:12 pm
© Reuters.  China coking coal futures soar as import limit report stirs supply fears

* Coking coal on track for biggest one-day jump since November

* Coking coal, coke technically overbought on RSI

* Steel, iron ore also higher

BEIJING, June 29 (Reuters) - China's coking coal futures soared 8 percent on Thursday and were on track for their biggest one-day jump in seven months, boosted by a report the world's top consumer plans to ban imports into small ports, stirring worries about tightening supply.

The most-active coking coal DJMcv1 futures in early trade touched 1,134.5 yuan ($167.32), up 8 percent and their highest since May 3. Prices were at 1,119.5 yuan a tonne at 0330 GMT.

Coke on the Dalian Commodity Exchange DCJcv1 rose more than 5 percent to its strongest in three months, with its intraday peak at 1,773.5 yuan.

"The price rallies on coking coal and coke are driven by the worries about a supply shortage in the future, which helps lift the whole bulk commodities market," said Xu Bo, analyst at Haitong Futures.

China's state media reported on Wednesday that the country would ban coal imports at small ports from July 1, the latest move by the country to curb arrivals of foreign product. relative strength index, a key technical indicator, showed that the coking coal and coke markets had broken above 70, suggesting they have been overbought.

Iron ore futures DCIOcv1 extended their rally into a fourth day, increasing more than 4 percent and hitting their highest in a month at 484.5 yuan a tonne.

The most-traded rebar futures SRBcv1 edged up over 1 percent to 3,292 yuan a tonne as optimism about demand continued to lift prices.

ANZ said activity in the physical market had picked up with 10 seaborne deals conducted on Wednesday, the busiest day in months as steel traders re-entered the market after a prolonged period on the sidelines.

Iron ore for delivery to China's Qingdao port .IO62-CNO=MB jumped 4.4 percent to $62.33 a tonne on Wednesday, the highest level since May 22, according to Metal Bulletin.

Last week, stocks of imported iron ore at China's ports SH-TOT-IRONINV rose to 141.5 million tonnes, the highest since 2004, according to data tracked by SteelHome. ($1 = 6.7804 Chinese yuan renminbi)

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.