29-07-2025
- Business
- Business Recorder
Coking coal retreats on profit-taking activities
BEIJING: Prices of coking coal futures in China retreated on Monday, as investors closed their long positions to cash in profits after the Dalian exchange decided to limit positions following the steelmaking ingredient's dramatic price rally.
The most-traded coking coal on China's Dalian Commodity Exchange (DCE) slid by 7% to 1,150 yuan ($160.43) a metric ton, as of 0257 GMT. Coke also fell by nearly 6%.
The Dalian exchange's announcement came after the price of coking coal rallied by 33% in the past week, fuelled by growing expectations of a supply reduction after the National Energy Administration ordered inspections at mines to check for excess production. 'Speculative sentiment receded and some investors liquidated long positions to avert risks after the Dalian exchange imposed restrictions on positions holding, thus resulting in a steep price fall,' said Zhou Tao, an analyst at broker Galaxy Futures. Prices of key steelmaking ingredient iron ore also softened, albeit in a tight range, as investors awaited clear clues from the upcoming high-level Politburo meeting by end-July and the fresh trade talks between the world's two largest economies.
The most-traded September iron ore contract traded 0.56% lower at 795.5 yuan a ton, and the benchmark September iron ore on the Singapore Exchange was 0.47% lower at $102.8 a ton. Steel benchmarks on the Shanghai Futures Exchange languished. Rebar shed 1.27%, hot-rolled coil lost 1.41%, wire rod slipped 2.9% and stainless steel dipped 0.62%.
