OREANDA-NEWS. August 21, 2017. Coking coal futures prices on China's Dalian Commodity Exchange (DCE) rose to the highest level this year, triggering a fresh wave of restocking by Chinese steelmakers ahead of peak seasonal demand in September.

The strength in futures prices has come in an otherwise quiet spot coking coal market. Some steel mills began buying cargoes yesterday, after initially having complained that prices were too high.

A Chinese steel mill bought a September-loading Panamax-sized cargo of German Creek for $198.50/t cfr China. A Panamax cargo of Peak Downs North for loading in the same month was sold to another steel mill at $196.50/t cfr China.

These levels are about $10/t higher than the price at which a premium low-volatile cargo was sold on a cfr basis only last week.

The most actively traded January coking coal futures contract on the DCE rose to 1,488.5 yuan/t today, the highest level this year.

"The big jump we saw in the futures market yesterday and today really was the result of a combination of factors," a China-based Australian supplier said. "The fundamentals in coke and coking coal are still firm, while restrictions on gasoline-powered trucks going to Jingtang port in Hebei are fueling worries about how stable domestic supply will be in the future, resulting in a spike in immediate demand."