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UPDATE 1-Dalian coking coal futures rise to over 2-month high as supply remains tight

(Updates with closing prices)

BEIJING, July 20 (Reuters) - Futures for steelmaking ingredients on China’s Dalian Commodity Exchange rose on Tuesday, with coking coal jumping more than 3% amid supply shortages.

The most-traded coking coal futures on the Dalian bourse for September delivery rose as much as 3.2% to 2,098 yuan ($323.54) per tonne, the highest since May 13. They ended up 2.0% at 2,074 yuan per tonne.

Coke futures advanced 2.6% to 2,738 yuan per tonne.

“Capacity utilisation rates of coking firms are rising, but haven’t recovered to the level before the output controls and are lower than the same period in previous years,” analysts with SinoSteel Futures wrote in a note.

China’s coke output in June fell 3.2% to 38.91 million tonnes compared with the same month in 2020, data from the statistics bureau showed.

Benchmark iron ore futures on the Dalian exchange ended up 0.3% at 1,233 yuan per tonne.

“Despite the current supply tightness in iron ore, particularly from Australia, we calculate prices are still fundamentally over-valued compared with the highest cost marginal producer on the cost curve,” said Atilla Widnell, managing director at Navigate Commodities in Singapore.

Spot prices of ore with 62% iron content for delivery to China SH-CCN-IRNOR62 dipped 50 cents to $222.5 per tonne on Monday, according to SteelHome consultancy.

FUNDAMENTALS

* Steel rebar on the Shanghai Futures Exchange for October delivery slipped 0.2% to 5,601 yuan per tonne.

* Hot rolled coils futures fell 0.6% to 5,968 yuan a tonne.

* Shanghai stainless steel futures for August delivery dropped 1.6% to 18,490 yuan per tonne.

* BHP Group Ltd on Tuesday reported full-year iron ore production near the top end of its forecast range, but a 4% drop in its fourth-quarter output.

* Brazilian miner Vale SA said it had produced 75.87 million tonnes of iron ore in the second quarter, up 1.3% from the previous quarter.

$1 = 6.4846 Chinese yuan renminbi Reporting by Min Zhang and Shivani Singh; editing by Vinay Dwivedi

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