India: BigMint's coking coal index settles at $215/t amid limited inquiries

• Limited offers from Australian miners propel PHCC prices
  
  
• Domestic coke offers may remain firm after imposition of quota restrictions
  
  

BigMint's premium hard coking coal (PHCC) index was assessed at $215/tonne (t) CNF Paradip, India, on 31 December 2024 against $223/t CNF on 14 December. Though the index has fallen from mid-December levels, price indications have been range-bound.

There are not many trades though there are inquiries at the moment, as only a few Australian miners were actively offering cargoes in the Indian markets, sources informed.

"We are in the market for procuring PHCC but have not got much offers due to holidays", said an eastern India-based steel mill.

Rationale

BigMint's coking coal index is derived using data points, i.e., trades, offers, and bids.

Ten (10) firm offers, bids, and indicative prices were heard. Nine (9) were taken for price calculation and given 100% weightage.

Factors impacting coking coal import prices

Prices recover towards year-end - Australian coking coal prices remained range-bound w-o-w. Prices recovered after falling last weekend. PHCC was assessed at $194/t FOB Australia. Limited spot availability of coking coal cargoes from key Australian miners for January-February have kept prices supported.

Indian met coke players lift offers - The Indian government has introduced quantitative restrictions on low-ash met coke imports for January-March and Apr-Jun 2025, capping each quarter at 713,583 t. Following this, Indian players have raised BF met coke offers by INR 500-1,000/t w-o-w to INR 32,000-33,000/t exw Jajpur. Indonesian plants are offering 62 CSR at $250-255/t FOB, while China prices are at $260/t FOB.

Chinese steel mills press for 5th straight coke price cut as inventories grow - Northern Chinese steelmakers initiated the fifth consecutive round of met coke price reductions, effective 27 December, following stable rates since mid-September. Mills in Tangshan, Xingtai, and Tianjin cut prices of wet and dry quenching coke by RMB 50-55/t due to high stocks and reduced consumption amid blast furnace maintenance. Steel product sales were sluggish despite slight price increases, further dampening demand for met coke.