Today, November 7, coke prices (main contract J1701) at Dalian Commodity Exchange (DCE) in China indicated a significant increase, opening the day at RMB 1,911/mt and closing at RMB 2,002/mt, up 7.0 percent during the day’s trading. Also on the same day at DCE, iron ore futures prices (main contract I1701) opened at RMB 500/mt and closed at RMB 520/mt, up 3.28 percent.
Meanwhile, on November 7, rebar futures prices (main contract RB1701) at Shanghai Futures Exchange (SHFE) opened at RMB 2,736/mt and closed at RMB 2,889/mt, up 5.98 percent. Hot rolled coil (HRC) futures prices (main contract HC1701) at SHFE opened the day at RMB 3,148/mt and closed at RMB 3,284/mt, up 4.95 percent during the course of the day’s business.
Significant increases have also been observed in futures prices of two other commodities. Coking coal prices (main contract JM1701) at Dalian Commodity Exchange (DCE) opened on November 7 at RMB 1,408/mt and closed at RMB 1,516/mt, up 9.97 percent, while thermal coal prices (main contract ZC701) at Zhengzhou Commodity Exchange (ZCE) opened at RMB 662.0/mt and closed at RMB 674.0/mt, up 3.44 percent during the course of the day.
China’s National Development and Reform Commission (NDRC) has held a meeting with senior officials of major Chinese coal enterprises, discussing how to ensure coal supply, including supply of both thermal coal and coking coal, in the coming peak season for coal consumption. Coal supply is now on the short side in China and coal prices have surged in recent weeks. Market insiders said it will take time for coal producers to respond to government calls to increase supply. Meanwhile, as there is increasing demand for coal for heating purposes in China’s northern region due to the colder weather conditions, it is thought that coal prices in China will generally indicate a rising trend in November and December.