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)
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