India: Domestic met coke prices inch up w-o-w in recent trades, steel price support awaited

• Chinese mills cut coke prices by RMB 50-55/t
  
  
• Australian coking coal tags hold steady w-o-w
  
  

India's domestic met coke prices inched up by INR 400-800/tonne (t) this week. As per BigMint's assessment, the 25-90 mm blast furnace (BF) grade stood at INR 32,800/t exw-Jajpur, while Gandhidham's prices were at INR 28,800/t.

"Domestic producers had lifted offers significantly to INR 34,000-36,000/t exw in eastern India last week following the announcement of quarterly quota import restrictions. However, the entire quantum of the hike could not be absorbed, and hence, marginal hikes were seen," informed a seller.

"Previously booked imported met coke cargoes are expected to arrive, which will add to the existing portside inventories. Additionally, domestic steel prices in India are yet to witness a significant recovery, and there is not much support from that end. Therefore, any sudden sharp hike in domestic met coke prices is unlikely," highlighted a met coke producer.

Market overview

Chinese steel mills announce 6th round of met coke price cut: Steelmakers in northern China, including Xingtai, Tangshan, Shijiazhuang, and Tianjin, cut met coke tags by RMB 50-55/t, starting 8 January, their sixth consecutive round of price reductions. This follows a brief period of stabilisation. In total, prices have fallen by RMB 300-330/t since October. Weak demand, falling steel prices, and eroded profits prompted slower purchases, pressuring coke prices downward.

Coking coal prices remain range-bound w-o-w: Australian coking coal prices remained range-bound w-o-w. PHCC was assessed at $197/t FOB Australia. A fall in steel prices globally and weak demand continued to weigh on offers.

Indian pig iron prices drop w-o-w: Steel-grade pig iron prices in Durgapur, India, decreased by INR 500/t w-o-w to INR 33,500/t exw.