Coking coal futures' prices in China soared on Wednesday as a government inspection on coal mine production sparked concerns of supply disruptions.
The most active coking coal contract on the Dalian Commodity Exchange closed daytime trade 11% higher, hitting the upper limit for a third straight session and also touching its highest since February 21.
Coke climbed 3.83%.
The continued price rally came after state media confirmed the veracity of government documents calling for inspections on eight major coal production hubs.
Reuters reported on Tuesday that prices soared on chatter of the inspections with a document purported to be from the National Energy Administration (NEA), but could not verify the authenticity of the document.
NEA will inspect coal mines in Shanxi, Inner Mongolia, Anhui, Henan, Guizhou, Shaanxi, Ningxia and Xinjiang in terms of whether their 2024 production exceeded the licensed capacity, the document said without specifying the timing.
NEA did not respond to a Reuters request for comment.
Iron ore prices, however, pulled back from multi-month highs.
The most-traded September iron ore contract on the DCE ended daytime trade 0.61% lower at 812 yuan ($113.36) a metric ton.
The benchmark August iron ore on the Singapore Exchange was 0.89% lower at $104.4 a ton, as of 0723 GMT.
The announcement of a $170 billion hydropower project in Tibet could provide a massive boost to the struggling concrete and steel sectors, said analysts from ANZ.
However, traders are unwinding long positions in iron ore futures after the initial rally, following news of the Yarlung Tsangpo dam, said Atilla Widnell, managing director at Navigate Commodities in Singapore.
Other steel benchmarks on the Shanghai Futures Exchange mostly gained ground. Hot-rolled coil rose 0.2%, stainless steel edged up 0.08%, rebar climbed 0.31% while wire rod fell 2.17%.
The most active coking coal contract on the Dalian Commodity Exchange closed daytime trade 11% higher, hitting the upper limit for a third straight session and also touching its highest since February 21.
Coke climbed 3.83%.
The continued price rally came after state media confirmed the veracity of government documents calling for inspections on eight major coal production hubs.
Reuters reported on Tuesday that prices soared on chatter of the inspections with a document purported to be from the National Energy Administration (NEA), but could not verify the authenticity of the document.
NEA will inspect coal mines in Shanxi, Inner Mongolia, Anhui, Henan, Guizhou, Shaanxi, Ningxia and Xinjiang in terms of whether their 2024 production exceeded the licensed capacity, the document said without specifying the timing.
NEA did not respond to a Reuters request for comment.
Iron ore prices, however, pulled back from multi-month highs.
The most-traded September iron ore contract on the DCE ended daytime trade 0.61% lower at 812 yuan ($113.36) a metric ton.
The benchmark August iron ore on the Singapore Exchange was 0.89% lower at $104.4 a ton, as of 0723 GMT.
The announcement of a $170 billion hydropower project in Tibet could provide a massive boost to the struggling concrete and steel sectors, said analysts from ANZ.
However, traders are unwinding long positions in iron ore futures after the initial rally, following news of the Yarlung Tsangpo dam, said Atilla Widnell, managing director at Navigate Commodities in Singapore.
Other steel benchmarks on the Shanghai Futures Exchange mostly gained ground. Hot-rolled coil rose 0.2%, stainless steel edged up 0.08%, rebar climbed 0.31% while wire rod fell 2.17%.
