November 16, 2017 / 3:08 AM / 4 months ago

China coke futures rise as producers raise prices

* Coke and iron ore futures up

* Coke producers increase prices to offset losses

* Rebar and coal down

SHANGHAI, Nov 16 (Reuters) - Chinese coke futures rose on Thursday as mills in the world’s top steel producer increased prices to offset the cost of higher raw materials, but steel and iron ore prices eased.

Coke producers in some regions including the top coal producing region of Shanxi province raised coke prices by 100 yuan ($15.07) a tonne to 1,600 yuan a tonne, analysts said.

Producers of the steel making ingredient have been incurring losses of up to 100 yuan a tonne, due to high coal prices even as coke demand from steel mills has eased due to high inventories.

“Coke producers have a strong desire to raise prices as prices have fallen too much, while steel mills are still enjoying a bumper profit up to 1,500 yuan a tonne,” said Yu Yang, an analyst with Shenyin & Wanguo Futures in Shanghai.

The most active coke futures on the Dalian Commodity Exchange rose 1.1 percent to 1,823 yuan a tonne by GMT 0208.

China has ordered industrial production curbs at plants, including coke producers, steel mills and construction sites, in 28 cities, to battle smog and clean its skies, hitting both supply and demand for steel.

“Steel mills are reluctant to accept the price hike for now, but they will restock eventually,” said a research manager with a trading firm in Hangzhou.

Iron ore on the Dalian Commodity Exchange rose 1.22 percent to 458.5 yuan a tonne by GMT 0208.

The most active rebar on the Shanghai Futures Exchange slipped 0.8 percent to 3,708 yuan a tonne and Dalian coal futures dropped 1.8 percent to 1,173.5 yuan.

Iron ore for delivery to China’s Qingdao port .IO62-CNO=MB dropped 2.1 percent to $61.84 a tonne, according to Metal Bulletin. ($1 = 6.6342 Chinese yuan renminbi) (Reporting by Ruby Lian and Josephine Mason; editing by Richard Pullin)

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