BEIJING – Chinese coking coal futures plunged on Thursday, after the country's state planner alerted companies with inflated coal prices, while benchmark iron ore rebounded despite government warnings.
The National Development and Reform Commission summoned some coal producers on Wednesday, urging them to resume supply as soon as possible, and asked local authorities to strengthen supervision and keep coal prices within reasonable range.
The most-traded coking coal futures on the Dalian Commodity Exchange dropped as much as 5.4% to 2 273 yuan ($357.27) per tonne in morning trade. They ended down 2.5% at 2 342 yuan a tonne.
Thermal coal futures on the Zhengzhou Commodity Exchange also dived, shedding as much as 7.5% to 801 yuan a tonne, their lowest since December 3.
Coke prices on the Dalian bourse dipped 0.1% to 3 083 yuan per tonne.
Benchmark iron ore futures, however, recovered after range-bound trading in morning trade and jumped 3.2% to 822 yuan a tonne at close.
That had erased losses on Wednesday after the state planner issued the second warning this year amid price rally.
Spot prices of iron ore with 62% iron content for delivery to China fell $4 to $146.5 a tonne on Wednesday, according to SteelHome consultancy.
Steel prices on the Shanghai Futures Exchange closed higher.
Construction material rebar rose 1.5% to 4 955 yuan a tonne, and hot rolled coils, used in cars and home appliances, increased 0.7% to 5 069 yuan per tonnne.
Shanghai stainless steel futures, for March delivery, were up 1.4% to 18 385 yuan a tonne.