Coal news and updates

Iron ore is surging thanks to its bulk-commodity compatriot, coal. Iron ore futures in Singapore advanced to the highest level in two weeks and contracts in China went limit-up as coal’s rally pulled steel and other raw materials in the supply chain higher.

In Singapore, SGX AsiaClear futures for December gained as much as 3.1 percent to $58.05 a metric ton, the highest since Oct. 5, while iron ore for January delivery surged 3.9 percent to 471.5 yuan ($69.58) on the Dalian Commodity Exchange. On Monday, the spot price for 62 percent content ore added 1 percent to $59.28 a dry ton, according to Metal Bulletin Ltd.

“Iron ore alone can’t make steel, it needs the help of coking coal,” Dang Man, an analyst at brokerage Maike Futures Co. in Xi’an, China, said by phone. “The shortage in coal supply right now seems unlikely to improve before year-end. That’s driving steel prices and production higher, benefiting iron ore too.”

SOurce: Bloomberg