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Dalian coking coal scales highest since mid-June
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Deadly China mine collapse prompts safety checks
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Dalian, SGX iron ore subdued after trading curbs
(Updates prices and casualties, adds safety checks directive)
By Enrico Dela Cruz
Feb 23 (Reuters) - Dalian coking coal futures scaled an
eight-month peak on Thursday as a large-scale coal mine collapse
in northern China's Inner Mongolia region prompted safety
checks, fanning fears of supply tightness.
Chinese leaders have sought a quick investigation into the
cause of the collapse that killed four people and injured six
others, with 49 missing.
The most-traded May coking coal on China's Dalian
Commodity Exchange (DCE) ended daytime trade 2.6% higher at
2,020.50 yuan ($293.35) a tonne, after hitting 2,085 yuan, the
highest since mid-June.
Coke, the processed form of coking or metallurgical coal
that is used in iron ore smelting, climbed 1.4% to 2,929.50 yuan
a tonne. It earlier reached a three-week high of 2,979 yuan.
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.
Authorities in Inner Mongolia and in Shanxi and Shaanxi
regions have ordered coal miners to immediately conduct safety
checks and local authorities to carry out inspections.
"It is expected that safety inspections will become
stricter," Huatai Futures analysts said in a note.
Iron ore futures, meanwhile, remained restrained, with the
most-active May contract on the DCE down 0.5% at 908.50 yuan
($131.90) a tonne, as traders exercised caution following the
DCE's move to curb speculative activity driving prices higher
recently.
On the Singapore Exchange, the steelmaking ingredient's benchmark March contract was up 0.5% at $130.70 a tonne, as of 0700 GMT. Analysts at commodities broker Marex said Chinese regulators might take further actions to tame prices. Steel benchmarks were also subdued, with rebar on the Shanghai Futures Exchange down 0.4%, hot-rolled coil slipping 0.3%, and wire rod adding 0.8%. Stainless steel shed 1%. (Reporting by Enrico Dela Cruz in Manila Editing by Vinay Dwivedi)
