Coking coal hits two-month low

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    China’s coking coal futures slumped to their lowest level in two months on Monday, dragged by weakening demand for the raw material and easing concerns over supply in the world’s top steel producer.

    The most-active coking coal contract with May expiry on the Dalian Commodity Exchange fell as much as 2.7 percent to 1,488.50 yuan ($230.48) a ton, its lowest level since Dec. 1, stretching losses to a 10th consecutive session.

    Demand for steel products and raw materials in China is expected to further weaken as the country heads for a week-long Spring Festival holiday from Feb. 11.

    Demand for steelmaking inputs has also been crimped by falling steel profit margins due to high raw material costs and seasonally weak steel demand in China, analysts at Sinosteel Futures said in a note.