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India: Domestic met coke prices descend marginally amid market uncertainty

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Met Coke
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29 Apr 2021, 18:00 IST
India: Domestic met coke prices descend marginally amid market uncertainty

Indian domestic prices for blast furnace grade metallurgical coke have been edging down as trading activities were relatively thin despite aggravated supply concerns amid rising Covid cases.

The ongoing second wave of the Covid-19 pandemic in India has still not affected the country's blast furnace steel production even as most integrated steel mills are providing liquid oxygen for medical use to meet demand from public hospitals. However, secondary steel mills are being heard to reduce output citing acute oxygen shortage.

Steel markets in India are fairly anticipated to withhold the impact of the surge in Covid-19 cases strong as industry participants largely believe that essential businesses would likely be exempted from potential lockdown restrictions, unlike last year when a nationwide lockdown was imposed.

Price Assessments

India's domestically produced met coke prices for the 25-90 mm, blast furnace grade are currently hovering at around INR 28,000/t (east coast) and INR 29,000/t (west coast).

CoalMint currently assesses the spot price for the 64% CSR grade blast furnace met coke at $413/t CNF India, up by $5/t w-o-w.

The 62% CSR grade BF met coke is currently assessed at $368/t CNF India -- up by $7/t w-o-w.

Outlook

Coking coal supply tightness in both the domestic and import markets for high-quality, low-sulfur hard coking coal should continue to support met coke prices in May.

Amidst escalating uncertainties for seaborne and inland transportation as Covid-19 cases continue to surge, coke producers may become cautious about procuring imported coking coal.

Even as seaborne coking coal demand from India has been steady so far in April despite the resurgence of Covid-19 infections, market sentiment could weaken if fatality rates worsen in May.

 

29 Apr 2021, 18:00 IST

 

 

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