Chinese coke futures rose as much as 6% to close at a three-week high on Thursday, buoyed by fears of falling supplies and resilient demand from steel mills.
“The market is paying increasing attention to annual coke production target in Shandong province as central environmental inspection team will audit there in end-June,” analysts with SinoSteel Futures said in a note.
The market expects coke output in Shandong to be below 32 million tonnes this year, according to the SinoSteel Futures notes. The province had produced 11.14 million tonnes of the raw material in the first four months. The most-actively traded coke futures on the Dalian Commodity Exchange, for September delivery, ended up 4.5% to 2,695 yuan ($421.65) a tonne, the highest since May 13. It jumped 6% to 2,733 yuan earlier.
Coking coal futures on the Dalian exchange inched up 0.8% to 1,879 yuan per tonne at close.
Benchmark iron ore futures increased 1.9% to 1,194 yuan a tonne, while spot 62% iron ore SH-CCN-IRNOR62 remained unchanged at $206.5 a tonne on Wednesday, according to SteelHome consultancy.
The increase in prices of the steelmaking raw materials were followed by steel prices.
Construction rebar on the Shanghai Futures Exchange , for October delivery, rose 1.7% to 5,148 yuan a tonne.
Hot-rolled coils, used in the manufacturing sector, gained 2.1% to 5,490 yuan a tonne.
Shanghai stainless steel futures, for July delivery, edged 0.2% higher to 16,090 yuan per tonne.
China's commerce ministry said on Thursday that it would continue to stabilise commodity prices, actively promote import diversification and strengthen pricing inspection and management.
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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