The iron ore complex saw a big jump in spot prices on Tuesday, up nearly 3% to get back above $120USD per tonne, while Dalian coking coal hit a two month high:
Meanwhile, the recent Indonesian ban on coal exports is hitting thermal coal futures in mainland China:
China’s thermal coal futures surged by as much as 7.8% to kick off 2022 on concerns of supply disruptions after Indonesia, its biggest overseas supplier, banned exports.
The most-active thermal coal futures contract, for May delivery, on the Zhengzhou Commodity Exchange opened up 7.3% higher and is at 708 yuan ($111.10) a tonne, up 5.5%, at 0225 GMT, on track for its biggest daily increase since Nov. 25. The most-active May futures contract settled up 5.5% at 707.6.
AdvertisementChina sourced 178 million tonnes of Indonesian coal, mostly thermal coal, in the first 11 months of 2021, accounting for more than 60% of its total coal imports, customs data showed.