India: Domestic met coke prices inch up on rising import offers

• Chinese mills accept 5th round of price hikes
  
  
• India's met coke imports surge in H1FY'25
  
  

India's domestic met coke prices experienced a slight uptrend this week. 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, up by INR 200/t w-o-w. However, prices in Gandhidham remained unchanged at INR 29,600/t. The market was dull with minimal transactions. Demand was low, and buyers largely preferred imported material due to its cost-effectiveness.

Market overview

Imported met coke offers to India rise $10/t: Imported met coke offers to India continued to increase this week, by about $10/t. Prices were assessed at $305/t CFR India from Indonesia. BigMint learnt that the latest booking was concluded at around $270/t FOB Indonesia for about 20,000 t. Mills are planning to re-enter the market with new allocations by early next week for mid- to end-November laycan cargoes.

Chinese mills accept 5th round of price hikes: Chinese mills' acceptance of the fifth round of met coke price hikes by RMB 50/t was marked by mixed sentiments. Some coke producers are optimistic that steel mills will eventually agree to further price adjustments, albeit in a more gradual, phased approach.

India's met coke imports up in H1FY'25: Indian met coke imports increased significantly in H1FY'25 to 2.3 mnt as against 1.8 mnt in H1FY'24 due to better realisations from the use of foreign material. Imports from China were the highest at 0.8 mnt in the period under review, against 0.4 mnt in H1FY'24, followed by Indonesia at 0.62 mnt as against 0.26 mnt in H1FY'24. AM/NS India was the largest importer in H1FY'25 at 0.67 mnt.

Coking coal prices remain stable: Australian coking coal prices were largely stable w-o-w at $203/t FOB Australia. Meanwhile, Asian met coal prices remained largely stable within a narrow range, as mixed signals emerged following the reopening of the Chinese market after the Golden Week holiday.

Outlook

Indian met coke prices are expected to remain range-bound due to low procurement of domestic material, as imports are better priced. Improvements in the Chinese domestic market and its resumption post-holidays will likely influence market dynamics.