Chinese coking coal and coke futures rose sharply on Monday following a deadly mining accident in Shanxi province over the weekend, raising concerns over tighter coal supply due to potential nationwide safety inspections.
A gas explosion at the Liushenyu coal mine in Shanxi on Friday reportedly killed 82 people, making it one of China’s deadliest mining accidents in recent years. Market participants expect the incident to trigger stricter mine safety inspections, which could impact domestic coal production in the near term.
The sharp rise in coal and coking coal futures also supported the broader ferrous complex, including iron ore, although iron ore fundamentals remained largely unchanged amid high portside inventories and rising supply levels.
Chinese steel traders said the increase in raw material futures provided cost support to finished steel prices, with spot steel prices reportedly increasing by 30-50 yuan (USD 4.4-7.3) per ton on Monday despite largely stable demand conditions. Market participants added that the stronger raw material market could keep sentiment cautious in the near term.
On the Dalian Commodity Exchange, the most-traded September iron ore contract edged higher to 793 yuan (USD 116.7) per ton. Coking coal and coke futures surged by nearly 8pct to 1,266.5 yuan (USD 187) and 1,879 yuan (USD 277) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures increased by 1.48pct to 3,218 yuan (USD 474) per ton, while HRC futures rose by 1.39pct to 3,432 yuan (USD 505) per ton. Wire rod futures gained 2.36pct to 3,433 yuan (USD 505) per ton, while stainless steel futures edged lower to 14,790 yuan (USD 2,177) per ton.
1 USD / 6.79 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,433.00 | ▲ 2.36 | ▲ 2.36 |
| Hot Rolled Coils | 3,432.00 | ▲ 1.39 | ▲ 1.37 |
| Rebar | 3,218.00 | ▲ 1.48 | ▲ 1.55 |
| Stainless Steel | 14,790.00 | ▼ -0.03 | ▲ 0.30 |
| Iron ore | 793.00 | ▲ 0.06 | ▲ 0.13 |
| Coke | 1,879.00 | ▲ 7.99 | ▲ 7.88 |
| Coking Coal | 1,266.50 | ▲ 7.97 | ▲ 8.21 |