BEIJING,
May 24 (Reuters) - Chinese coking coal and coke futures dropped around 5% on
Tuesday, weighed down by expectations of higher supply and as demand from steel
mills remained weak on thin profit margins.
A
cabinet meeting chaired by Chinese Premier Li Keqiang said on Monday said the
country would take targeted steps to support the economy, ensuring energy
security and coal supplies.
Coking
coal imports from Mongolia are also resuming at some borders, analysts with
Galaxy Futures wrote in a note, highlighting strong expectation of a rise in
supplies.
On
the demand side, profits at steel firms are relatively low amid sluggish
construction activities, weighing on the steelmaking ingredients, said Galaxy
Futures.
The
most-active September contract of metallurgical coal on the Dalian Commodity
Exchange plunged as much as 5.5% to 2,478 yuan ($371.54) per tonne at market
close.
Coke
prices fell 4.8% to 3,276 yuan a tonne.
Benchmark
iron ore futures on the Dalian bourse ended 3.5% lower at 831 yuan per tonne
after a nearly 7% surge on Monday.
Spot
62% iron ore, meanwhile, jumped $6.5 to $135 on Monday, data compiled by
SteelHome consultancy showed. <SH-CCN-IRNOR62>
Construction-used
steel rebar on the Shanghai Futures Exchange, for October delivery, dropped
3.6% to 4,468 yuan a tonne. Hot-rolled coils used in the manufacturing sector
declined 3.4% to 4,609 yuan a tonne.
Shanghai
stainless steel futures, for June delivery, slipped 1.7% to 18,440 yuan per
tonne.
($1
= 6.6695 Chinese yuan) (Reporting by Min Zhang in Beijing and Enrico Dela Cruz
in Manila; Editing by Subhranshu Sahu)