China’s commodities markets fell on Wednesday after the National Development and Reform Commission said it considered intervention to cool down overheated coal prices. The tumble in China sent a knock-on effect in global markets, with prices of base metals such as aluminium, copper, and zinc dipping. The benchmark crude oil price also turned lower.
China’s thermal coal futures settled down 8% at CNY1,755.40 ($274.71) per ton on Wednesday after hitting a new all-time high on Tuesday. Coking coal and coke futures also fell 9%, the maximum allowed. China’s aluminium and zinc futures dropped more than 6%, while petrochemicals such as coal-derived methanol, ethylene glycol, and urea decreased by 8% to 9%.
