Iron-ore, coking coal skid again in China as demand concerns emerge
Thursday, October 19, 2017 - 5:44:23 PM
Mining Weekly

Mining News - Iron ore futures slid more than 4% and coking coal dropped more than 5%. Rebar steel futures tumbled over 4% as data showed China`s steel output rose year-on-year in September, though below the monthly record reached in August.

Mills in the northern part of China are expected to cut output by up to half during winter, or four months from mid-November, on government orders to limit pollution. Some cities, however, have already implemented the steel output curbs, including the top steelmaking city of Tangshan.

The most-traded iron ore contract for January delivery on the Dalian Commodity Exchange was down 4.4% at 439.50 yuan ($66) a tonne by 02:10 GMT, after falling as far as 437 yuan.

"We are getting less orders especially from the northern steel mills," said a Beijing-based iron ore trader. "But our cargoes are mainstream so liquidity is still okay."
By mainstream, the trader meant her company sells high-quality Australian iron ore which are mostly preferred by mills across China as it boosts productivity at their plants and can reduce emissions as less coke is used in the production process.

Still, overall iron ore consumption in China could drop by 77.65-million tonnes if all 28 cities covered by the restrictions cut production by half, Cao Ying, analyst at SDIC Essence Futures, has estimated.

That represents almost 8% of China`s 2016 imports.

Coking coal futures slumped 5.5% to 1,108.50 yuan per tonne and coke was last down 6% at 1 705 yuan, after earlier hitting a 3-1/2-week low of 1 696.50 yuan.
The most-active rebar on the Shanghai Futures Exchange fell 4.1% to 3 579 yuan a tonne.

China`s crude steel output rose 5.3% from a year earlier to 71.83-million tonnes in September, but below a record 74.59-million tonnes in August, government data showed.


http://www.miningnews.ir/En/News/43915/Iron-ore,-coking-coal-skid-again-in-China-as-demand-concerns-emerge
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