India: Domestic met coke prices fall to 4-month low on subdued demand, falling import offers

• Hebei's steel mills initiate 8th round of met coke price cuts
  
  
• Imported met coke offers to India fall by $10-15/t w-o-w
  
  

India's domestic met coke prices corrected downward by INR 300-600/tonne (t) w-o-w, hitting a four-month low last seen in the middle of May 2024. According to BigMint's assessments, 25-90 mm blast furnace (BF) grade met coke was priced at INR 33,500/t exw-Jajpur, down by INR 600/t w-o-w.

According to a producer, "Market sentiments are weak. Although there are some offers at INR 34,000-35,000/t exw-Jajpur, trades are limited." Price pressure from imported met coke and bearish sentiments in the steel and pig iron markets have continued to weigh on India's domestic met coke offers.

Factors impacting Indian met coke prices

Imported met coke offers to India fall: Imported met coke offers to India are currently at around $235/t FOB from Indonesia and $225/t FOB from China, with prices declining by $10-15 w-o-w. Transactions on cost, insurance, and freight (CIF) basis remained absent this week, owing to a lack of clarity on import quotas.

China's Hebei steelmakers slash met coke prices: Some Chinese steel mills in Hebei, including the Tangshan area, initiated their eighth round of price cuts in met coke, reducing their purchase bids for the material. Prices of wet quenched met coke were reduced by RMB 50/t ($7) and of the dry quenched variant by RMB 55/t ($7.72/t), effective 10 September 2024.

Coking coal prices continue to head south: Australian coking coal prices corrected downward by $14/t w-o-w to $180/t FOB Australia. A fall in futures, along with demand concerns in China, weighed on offers.

Outlook

Weak demand in the domestic market, coupled with competitive overseas import offers, continues to put pressure on the former, especially given the prevailing monsoon season. Meanwhile, clarity is awaited on the imported met coke quota restrictions.