China coking coal skids on weak demand, higher supply prospects

July 20 (Reuters) - Coking coal prices in China tumbled to a seven-month low on Wednesday, weighed down by prospects of higher supply and sustained weakness in demand for the steelmaking raw material, while fresh hopes of economic stimulus supported iron ore.

The most-traded September coking coal contract on the Dalian Commodity Exchange DJMcv1 ended daytime trade 6.7% lower at 1,922.50 yuan ($284.78) a tonne, after hitting 1,885.50 yuan, its weakest level since Dec. 13.

Coke, the processed form of coking coal used in iron ore smelting, shed 3.6% to 2,590.50 yuan a tonne DCJcv1.

"Demand for raw materials has declined due to a reduction in steel mill production," Sinosteel Futures analysts said in a note.