Chinese coking coal futures hit the roof
Coking coal prices climbed Monday 10%, the maximum daily amount allowed based on market rules, just when some analysts were predicting the end of the rally.
The fresh gains came amid tight supply and renewed appetite for risky assets, leading a broad rally in Chinese commodities.
Metallurgical coal prices were also boosted by news in the Western world, particularly the fact that the FBI cleared Hillary Clinton for using a private email server, giving her a last-minute boost ahead of the Nov. 8 election.
The most-traded coking coal for January delivery on the Dalian Commodity Exchange soared 10% to 1,516 yuan ($224) a tonne, a record high.
Coke, made from coking coal and used to make steel, also rose by its 7% limit to 2,001.50 yuan per tonne, its highest price since March 2013, data from The Metal Bulletin shows (subs. required).
The unexpected, yet welcome price rally has pushed miners to reopen mines and revive projects that were placed in the backburner in the past two years. In Australia alone, there are at least seven mines slated to resume operations before 2016 ends — four in Queensland and three in New South Wales.