India: Domestic met coke prices hold steady amid global market volatility

• Chinese mills accept 6th round of price hikes
  
  
• Indian pig iron prices decline slightly w-o-w
  
  

India's domestic met coke prices remained largely stable this week amid market volatility globally. According to BigMint's assessment, 25-90 mm blast furnace (BF) grade met coke prices were recorded at INR 33,500/tonne (t) exw-Jajpur. Prices in Gandhidham remained unchanged at INR 29,600/t.

Domestic met coke deals recorded by BigMint:

• Deals for 20,000 t of met coke were heard at INR 28,000-30,000/t in southern India.
  
  
• A cokery sold about 7,000 t at INR 34,500/t ex-Jajpur.
  
  
• A deal for 15,000 t was heard concluded at INR 33,500-34,250/t ex-Jajpur.
  
  

Market overview

Imported met coke offers to India fall by $15/t w-o-w: Imported met coke offers to India fell by about $15/t w-o-w, with prices assessed at $288/t CFR India from Indonesia. BigMint learnt that new bookings are being concluded for end-November loading by trading companies for stock and sales.

Coking coal prices drop today after gaining early this week: Australian coking coal prices picked up by 4% w-o-w to $211.25/t FOB Australia yesterday. However, prices dropped to $205.5/t FOB today. Buying remained dull in the Indian market. Chinese end-users remained inactive, as cautious sentiment prevailed amid declines in the futures market.

Chinese mills accept 6th round of price hikes: Some steelmakers in North China's Hebei and Tianjin announced that they would accept an additional increase of RMB 50-55/t ($7.1-7.8/t) in procurement prices for wet-quenching and dry-quenching met coke.

Industry sources cited strong demand for raw materials and rising profits among domestic steelmakers as key drivers behind the decision to accept the price increase. They further noted that major steel producers are likely to approve the hike later today.

A Chinese coke producer initiated a seventh round of price hikes by RMB 30/t, in response to squeezed margins and rising production costs, particularly for top-charging coke ovens.

Indian pig iron prices inch down w-o-w: Steel-grade pig iron prices in India declined marginally this week, with prices in Durgapur assessed at INR 40,300/t exw, stable w-o-w, while those in Ludhiana decreased by INR 250/t w-o-w.

Outlook

Indian domestic met coke prices may not see significant changes amid the approaching festive season. Additionally, imported met coke bookings may also remain on the lower side due to the holiday season. However, with the continuous rise in Chinese met coke prices, the Indian domestic market may change.