India: Domestic met coke prices edge down despite global price recovery
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- Chinese mills accept second round of price hike
- Imported offers into India pick up this week
India's domestic met coke prices edged down on a weekly basis. According to BigMint's assessments, the benchmark 25-90-mm blast furnace (BF) grade met coke was recorded at INR 33,300/t exw-Jajpur, down INR 200/t w-o-w. Prices in Gandhidham also reduced by INR 200/t to INR 29,600/t levels.
Market overview
Imported met coke prices pick up: Imported met coke offers, on the other hand, went contrarion to the domestic trend. Offers rose this week. Fresh ones were heard at levels of $235/t FOB China this week as against $225/t assessed last week. Offers from Indonesia were heard at $240-245/t FoB. The imported met coke market witnessed active trades towards end of last week. Indian mills were heard to have closed two deals of 40,000t each from Indonesia. One was for October laycan and another for November at about $245/t FOB, sources informed BigMint.
However, despite the increase, imported prices are still lower in rupee parity compared to the domestic INR 33,300/t which makes the former more cost-effective.
Chinese mills accept 2nd round of price hike: Several Chinese steel manufacturers have agreed to the second round of coke price increases proposed by coke producers earlier this week. This acceptance comes as companies expedite restocking efforts ahead of the holiday season, while also capitalising on the upward trend in finished steel prices. Major steel mills in Hebei, Shandong and Tianjin agreed on an RMB 50/tonne price hike for wet-quenching met coke and RMB 55/t increase for dry-quenching met coke, effective 26 September.
Coking coal prices pick up w-o-w: Australian coking coal prices picked up by $9/t w-o-w to $189/t, FOB Australia. Prices have risen on China's restocking demand. Demand from India, however, continues to be limited compared to the level of stocks available.
Despite global price hikes, Indian met coke has not witnessed any improvement. Buying continued to remain dull in the Indian market during the week. An eastern region-based merchant coke maker sold about 10,000t of met coke at around INR 35,000/t levels. Buyers' perspective, however, remained different and they stated that buying is very low and imported offers are cost effective currently compared to domestic coke offer levels. BigMint learned from sources, some coke makers are buying imported material and selling these directly in the market.
Outlook
The Indian met coke market may continue to face pressure due to reduced demand from buyers, and also the more favourable imported prices in rupee parity.