China’s benchmark metallurgical coal and coke futures surged to record highs on Thursday, driven by fears of a prolonged tightness in supply of the steelmaking materials in the world’s top steel producer.
The most-traded January metallurgical or coking coal on the Dalian Commodity Exchange jumped 7.5 percent to 3,057 yuan ($473.29) a ton, after a marginal pullback in the previous session and despite a transaction fee raise seen as a measure by market regulators to cool the blistering rally.
Coke climbed 6.3 percent to 3,824 yuan a ton, rising for a ninth straight session.
A coal supply crunch that China had expected to ease in July continued to rattle its mammoth steel sector as local mines face tougher environmental and safety restrictions.
Imports, meanwhile, were dampened by a ban on Australian coal and COVID-19 curbs hampering shipments from Mongolia. – Reuters
