A major steel producer in eastern China had been urged to idle its blast furnaces after a central government inspection, according to Zhuo Guiqiu, an analyst with Jinrui Capital, who declined to name the producer.
China had pledged to control its annual crude steel output at lower level than last year. The country’s state planner said earlier this year that it would conduct field inspections in June-July.
There are increasing worries that demand for raw materials such as coke would further weaken as more places are said to have stepped up steel output controls, Zhuo added.
The most-traded coke futures on the Dalian Commodity Exchange, for September delivery, closed down 5.3% to one-month high of 2,472 yuan ($381.46) per tonne.
