Coal news and updates

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 DJMcv1 fell as much as 2.7% to 1,488.50 yuan ($230.48) a tonne, 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.

 

“Steel mills in some regions have begun to implement different levels of maintenance on blast furnaces” to cope with the margin squeeze, the analysts said.

 

The pressure on Dalian coking coal emerged from Jan. 19, following a report that China was considering allowing some stranded Australian coal shipments at its ports to be unloaded. which has a strained relationship with Canberra over trade, politics and the origins of the new coronavirus, did not allow any coal cargos from Australia to pass customs clearance in December. 70 ships containing an estimated 6 million tonnes of Australian thermal and metallurgical coal were sitting off the coast of China waiting to unload, according to ANZ commodity strategists.

 

They added unloading the stranded cargoes “provides hope for struggling Chinese steel mills”, which had scrambled for alternative coal sources due to restrictions on Australia.

 

Dalian coke DCJcv1 rose 0.6%, but Dalian iron ore DCIOcv1 slipped 0.6% after a volatile morning trade.

 

Rebar SRBcv1 and hot-rolled coil SHHCcv1 on the Shanghai Futures Exchange SRBcv1 both dropped 1.3%, while stainless steel SHSScv1 climbed 1.4%.

 

 

Source : https://www.hellenicshippingnews.com