Coking coal futures jump on supply fears after China mine collapse

By Enrico Dela Cruz Feb 23 (Reuters) - Dalian coking coal futures surged nearly 6% on Thursday as a large-scale coal mine collapse in northern China's Inner Mongolia region fanned fears of supply tightness. Chinese President Xi Jinping has ordered search and rescue efforts at the site and Premier Li Keqiang has demanded a rapid investigation into the cause of the collapse that killed two people and trapped more than 50. The most-traded May coking coal on China's Dalian Commodity Exchange (DCE) rose as much as 5.9% to 2,085 yuan ($302.58) a tonne, the highest since mid-June. Coke, the processed form of coking or metallurgical coal that is used in iron ore smelting, climbed up to 3.1% to 2,979 yuan a tonne on the Dalian exchange , the highest since Jan. 30. China is the world' biggest steel manufacturer and Inner Mongolia is among its top coal suppliers that has been producing the commodity at a heightened rate for months now in response to a government call to boost local supply and stabilise prices. "This incident may lead to strengthened security checks in coal mines and affect supply," Zhongzhou Futures analysts said in a note. Iron ore futures, meanwhile, remained restrained, with the most-active May contract on the DCE steady at 913 yuan
($132.50) a tonne , as of 0200 GMT. Traders exercised caution following the DCE's move to curb speculative activity driving iron ore prices higher. But with the move having little effect on dampening sentiment, analysts at commodities broker Marex said Chinese regulators might take further actions to tame prices. On the Singapore Exchange, the steelmaking ingredient's benchmark March contract was up 0.3% at $130.45 a tonne. Steel benchmarks were also firmer, with rebar on the Shanghai Futures Exchange up 0.9%, hot-rolled coil gaining 0.8%, and wire rod climbing 1.4%. Stainless steel slipped 0.2%. (Reporting by Enrico Dela Cruz in Manila Editing by Vinay Dwivedi)