Most active coking coal futures extended daily decline to 8% or limit down in the afternoon session

Most active coking coal futures extended daily decline to 8% or limit down in the afternoon session

Coking coal futures, particularly those traded on the Dalian Commodity Exchange (DCE), experienced a significant decline on Monday, July 28, 2025. The most-traded coking coal contract DJMcv1 closed the day 11% lower, hitting a limit down at 1,100.5 yuan ($153.47) per metric tonne [2]. This marked the end of a seven-day rally that saw prices surge by 33% last week.

The dramatic price increase was driven by growing expectations of a supply reduction following the National Energy Administration's order to inspect mines in major coal production hubs for excess production. However, the Dalian exchange's announcement to limit positions triggered a price slump, as investors closed long positions to cash in profits and avoid potential risks [2].

The decline in coking coal prices comes amidst broader market volatility. Key steelmaking ingredient iron ore also softened, with the most-traded September iron ore contract DCIOcv1 ending the day 1.75% lower at 786 yuan per tonne [2]. Steel benchmarks on the Shanghai Futures Exchange lost ground, with rebar SRBcv1 shedding 2.05%, hot-rolled coil SHHCcv1 losing 2.3%, wire rod SWRcv1 slipping 2.92%, and stainless steel SHSScv1 dipping 0.73% [2].

This market behavior underscores the volatile nature of commodity markets, where prices can be significantly influenced by policy changes and speculative sentiment. Investors should remain vigilant for further developments, including the upcoming high-level Politburo meeting and trade talks between the world's two largest economies.

References:
[1] https://www.barchart.com/futures/quotes/U7*0
[2] https://www.miningweekly.com/article/coking-coal-retreats-on-profit-taking-activities-2025-07-28