BEIJING- Chinese coking coal and coke futures jumped more than 4 percent on Tuesday, fueled by concerns of tight supply amid Beijing’s toughening emissions standards, although demand for the steelmaking ingredients remained tepid as mills cut production.
“Under the energy consumption restriction and environmental policy, the supply and demand for coke contracted,” Huatai Futures analysts wrote in a note.
Coking coal imports from Mongolia are still sluggish while the shortage in thermal coal also indirectly affected coking coal blending supply, Huatai Futures added.
Prices for the metallurgical coal on the Dalian Commodity Exchange rose as much as 4.4 percent to 2,972 yuan ($459.62) per ton. The futures contract was up 3.5 percent at 3,946 yuan a ton.
Thermal coal futures on the Zhengzhou Commodity Exchange surged 5.3 percent to 1,297 yuan per ton amid supply crunch.
