India: Domestic met coke prices edge down on subdued demand
Indian domestic prices for blast furnace grade metallurgical coke have been edging down on subdued trading amidst partial lockdowns in majority of the states. India...
Indian domestic prices for blast furnace grade metallurgical coke have been edging down on subdued trading amidst partial lockdowns in majority of the states.
India's domestically produced met coke prices, for the 25-90 millimeter-sized blast furnace grade, are currently ranging between INR 28,000/t-30,000/tonne (t) along the country's east and west coasts respectively.
Import prices stable amid sparse trading
India's metallurgical (met) coke import prices remained flat in the past week, as buyers continued to hold back on their seaborne purchases amidst ample availability of relatively low-priced domestic material.
Moreover, most end-users have slowed down their restocking activities since last two months because of the uncertainties following the resurgence of Covid-19 cases in India.
In the recent past, however, met coke import prices had risen consistently across major originating countries in the Asia-Pacific region, owing to increased demand from China, the world's largest exporter of metallurgical coke for years.
CoalMint assessed the blast furnace (BF) grade met coke with 64% coke strength after reaction (CSR) at $420.00/tonne (t) CNF India, unchanged from last week. The 62% CSR BF grade met coke price is also unchanged at $378.00/t CNF India.
Exports rise amidst declining domestic sales
Indian coal traders and producers have been actively looking at export options for better price realisations compared to domestic sales.
A total volume of 245,350 t of metallurgical coke had been exported this year to countries such as Vietnam, Brazil, Indonesia, Romania and Oman. Market participants strongly anticipate that this trend would continue throughout the remainder of this year at least.
Met coke exports from India during the year so far comprise 65,250 t to Vietnam, 41,000 t to Brazil, 33,000 t to Indonesia, 27,500 t to Romania and 22,000 t to Japan. Besides, an 11,000 t cargo of met coke was exported by a major East Indian producer as of late last week.
Outlook
Coking coal supply tightness in both the domestic and import markets for high-quality, low-sulphur hard coking coal should continue to support met coke prices in Jun'21.
Coke producers may become cautious about procuring imported coking coal amid persistent uncertainties for seaborne and inland transportation due to the ongoing pandemic.
Moreover, the country's steel sector outlook presently appears bleak, given that the resurgent pandemic could result in reduced steel output.