Today, October 27, coke prices (main contract J1701) at Dalian Commodity Exchange (DCE) indicated a significant decline, opening the day at RMB 1,706/mt and closing at RMB 1,675/mt, down 1.9 percent during the day. Also at DCE, iron ore futures prices (main contract I1701) opened at RMB 475/mt and closed at RMB 479/mt, up 0.84 percent, while they had hit a low of RMB 466/mt during the trading session.
Meanwhile, on October 27, rebar futures prices (main contract RB1701) at Shanghai Futures Exchange (SHFE) opened at RMB 2,535/mt and closed at RMB 2,512/mt, down 1.34 percent. Hot rolled coil (HRC) futures prices (main contract HC1701) at SHFE opened the day at RMB 2,858/mt and closed at RMB 2,849/mt, down 0.56 percent during the course of the day’s business.
As regards rebar and HRC, this is the second consecutive day of downward movement in futures prices, while the decrease in coke futures prices is the first following the consecutive increases recorded on the previous 16 days. Some nervousness has been reported in the futures market due to these latest decreases.
Significant decreases have also been observed in futures prices of two other commodities. Coking coal prices (main contract JM1701) at Dalian Commodity Exchange (DCE) opened on October 27 at RMB 1,279/mt and closed at RMB 1,244/mt, down 3.53 percent, while thermal coal prices (main contract ZC701) at Zhengzhou Commodity Exchange (ZCE) opened at RMB 628.4/mt and closed at RMB 610.2/mt, down 4.89 percent during the course of the day. Increased fees announced on October 26 at Zhengzhou Commodity Exchange (ZCE) for thermal coal futures transactions contributed to the decline in thermal coal futures prices at ZCE.
Meanwhile, on October 25, China’s National Development and Reform Commission (NDRC) held a meeting with chairmen 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. Market insiders said the coal supply will likely increase, while this would negatively affect coal futures prices.