Chinese Met Coke Prices Hit 8-Month Low in 2019

Chinese domestic met coke prices have hit 8-months low and slip further by USD 5/MT, FOB China in the fourth week of March. Met coke prices have witnessed a continuous fall of USD 15/MT, FOB China in a week time. However, prices have seen a steep fall of USD 26/MT, FOB China on M-o-M basis. Prices at such levels were lastly seen in the month of August 2018.

It's been one month; seaborne metallurgical coke market remains low on persistent soft demand for raw material thereby exerting downward pressure on coke prices. Prices are continuously on the downtrend as Chinese steel manufacturers have kept sufficient inventories which are thereby narrowing profit margins.

Few market participants shared that "buyers are unwilling to procure actively at present because they are expecting prices to fall further". Most of the Chinese mills are the same and are willing to wait as Chinese domestic coal prices are also declining in-line with coke prices.

According to a few traders, the material containing Chinese 62%/60% coke was offered at USD 315/MT FOB China, but the buyers' tradable value was placed at USD 300/MT FOB China. However, market participants are in now wait-and-watch situation as they are expecting a further price cut in the near term.

In the fourth week of March, the 64% CSR and the 62% CSR grades are currently assessed at around USD 332/MT and USD 318/MT FOB China respectively, down by USD 15/MT and USD 16.5/MT from the rates that prevailed in the last week (18 Mar-24 Mar'19).

Indian met coke import prices have also seen a gradual fall of around USD 15/MT in a week time. For the 64% CSR and the 62% CSR grades prices are at around USD 345.5/MT and USD 331.50/MT respectively on CNF India basis.