The price of coking coal, a key material for China’s large steel making industry, surged amidst Beijing’s efforts to control commodity prices, reported the Financial Times.
The price of China’s high quality coking coal imports rose over $300 a ton for the first time since 2017, up nearly 150% since October. Cost increases are due to low supplies which resulted in steel mills paying much higher prices than foreign rivals.
Although China is self-sufficient in coking coal, the magnitude of the country’s steel industry has China importing 65 millio tons of coking coal every year. The price surge emphasizes the difficulties with trying to cool the commodity market during a global economic recovery.