Steel raw material prices on the Dalian Commodity Exchange, China, fell on Tuesday, as control measures due to the recent increase in Covid-19 cases, which hampered transport levels and production at the mills and also reduced demand.
“Affected by the pandemic situation, demand has been pent up, while disrupted transport has led to increased inventories in coke plants,” analysts at GF Futures wrote in a note.
Coke inventories at 230 coke plants stood at 11.5m tonnes last week, up 1.1% from the previous week, data from consultancy Mysteel showed.
As steelmakers’ profit margins are relatively low, GF Futures added that there is a possibility that coke producers will lower prices.
The most active coke futures on the Dalian Exchange for May delivery fell 3.2% to 3,509 yuan ($551.63) a tonne at close.
Metallurgical coal prices fell 3.1% to 2,922 yuan per tonne.
Benchmark iron ore futures on the Dalian Exchange closed down 3.6% to 799 yuan a tonne.
Source: CNN Brasil
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