– Coking coal futures fell 5.3% at 1,831 CNY/ton ($280/ton), the lowest since June 9.
China’s coking coal and coking coal prices on July 8 fell to the lowest level in the past 1 month. Iron ore prices fell 3.6% as some mills limited output stoking concerns about demand for the steelmaking raw material.
Zhuo Guiqiu, an analyst with Hong Kong-based Jinrui Capital, revealed that a major steel producer in eastern China was ordered to shut down blast furnaces after an inspection by Chinese authorities.
China committed to control steel output this year lower than last year. In an announcement earlier this year, the country’s authorities said they would inspect steel production in June and July.
Mr. Zhuo added that there are more and more concerns about the demand for raw materials such as coke will continue to weaken because of the policy of strengthening steel production control.
Coke for September delivery on the Dalian Exchange, China was at 2,472 CNY/ton ($381.5/ton), down 5.3% compared to 7/7. This is the lowest level in a month.
Coking coal futures fell 5.3% at CNY 1,831/ton ($280/ton), the lowest since June 9.
Iron ore futures on the Dalian bourse fell 2.9% from July 7, down to 1,188 CNY/ton ($183.1/ton).
While the price of raw materials for production went down, the price of steel on the Shanghai trading floor went up.
Construction rebar, delivered in October, increased 1.0% to 5,393 CNY/ton ($830/ton).
Hot rolled coil increased 1.4% to 5,750 CNY/ton ($890/ton).
Stainless steel for August delivery rose 2.6% to 17,135 CNY/ton ($2,640/ton).
China is the world’s largest steel producer. In 2019, the country produced 1.001 billion tons of steel, accounting for 53.5% of global production. In 2020, the figure increases to 1.054 billion tons, accounting for 56.5% of world production.
Source: VITIC/Reuters
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