BEIJING- Chinese coking coal and coke futures dropped more than 3 percent on Tuesday, weighed down by expectation of higher supply and as demand from steel mills remained weak on thin profit margins.
A cabinet meeting chaired by Chinese Premier Li Keqiang said on Monday the country would take targeted steps to support the economy, ensuring energy security and coal supplies.
Coking coal imports from Mongolia are also resuming at some borders, analysts with Galaxy Futures wrote in a note, highlighting strong expectation of a rise in supplies.
On the demand side, profits at steel firms are relatively low amid sluggish construction activities, weighing on the steelmaking ingredients, said Galaxy Futures.
The most-active September contract of metallurgical coal on the Dalian Commodity Exchange dived 3.8 percent to 2,524 yuan ($379.12) per ton.
Coke prices fell 3.2 percent to 3,331 yuan a ton.
Benchmark iron ore futures on the Dalian bourse dipped 0.5 percent to 857 yuan per ton after a near 7 percent surge on Monday.
Spot 62 percent iron ore, meanwhile, jumped $6.5 to $135 on Monday, data compiled by SteelHome consultancy showed.
