Chinese coking coal has seen a collapse of more than 6.5% in the value of futures contracts on the Dalian market over the past three months. And this, despite a promising demand. Analysts remain optimistic, however.
Chinese coking coal: fall in contract value
Futures in the Dalian Chinese coking coal (or coke) market fell 6.5% in value, reaching their lowest rate since November 2020. Some coke contracts plunged to 1378 yuan or 214.64 USD per ton.
Impact of COVID-19 ?
This drop in contracts could be related to a temporary imbalance or to a new awareness. The manufacturing process of coking coal is very polluting, companies may want to reduce their use.
Analysts are still optimistic about the use of this coal. Firstly, the mines, deprived of the vacations because of the coronavirus, maintain an abundant national production. Secondly, demand is encouraging, especially since the utilization rate of steel mills remains high.