BEIJING- Chinese coking coal futures rose 4 percent on Monday, as stringent inspections on domestic mines and tightening imports fuelled supply concerns, while expectations of restocking demand also supported prices.
China last week launched a year-long safety inspection campaign that targets all working coal mines and coal-mining projects after several recent fatal accidents, stoking worries about some coal supplies.
Meanwhile, coking coal imports remain tight because of pandemic-related restrictions in Mongolia and souring China-Australia relations, Huatai Futures wrote in a note.
The most traded coking coal contract on the Dalian Commodity Exchange, for February delivery, jumped as much as 4 percent to 1,352 yuan ($205.14) per ton, in its biggest intraday percentage gain since Oct.9, after opening 3 percent higher.
As the weather cools, there’s still restocking demand, said Huatai Futures, adding that coal prices were expected to rise further as supply was not likely to increase much.
Coking coal inventories at coking plants and steel mills stood at 18.18 million tons, as of Nov.20, data from Mysteel consultancy showed, up 0.2 percent from the previous week.