Coke contract prices to surge on output cuts, steel boost

Metallurgical coal, or coke, contracts are set for the longest run of gains since quarterly deals were introduced in 2010 as China cuts output and raises steel production.

Spot prices for hard coking coal have gained more than 80 percent since the start of June to more than $150 a metric ton, surging above the third-quarter contract price of $92.50. Miners and Japanese steelmakers have agreed to a supply accord at a slight premium to the spot price the past few quarters, according to UBS Group AG.

A deal above $100 for the last three months of the year would be the highest since the first half of 2015 and the third straight quarterly gain.