India: Domestic met coke prices remain range-bound w-o-w

• Coking coal prices edge up w-o-w
  
  
• Pig iron prices fall by INR 400/t
  
  

India's domestic met coke prices remained range-bound this week. As per BigMint's assessment, the 25-90 mm blast furnace (BF) grade stood at INR 31,300/t exw-Jajpur, while Gandhidham's prices stood at INR 28,400/t.

"Although offers are at around INR 33,000-34,000/t exw Jajpur, workable price levels are at around INR 30,000-31,000/t, exw. Not much trades are seen as industry is awaiting announcement from the ministry regarding imposition of quota restrictions," highlighted a merchant met coke producer.

Market overview

India's imported met coke market turns quiet: India's imported met coke market remained quiet this week, without any trades, after active bookings last week. This follows rumours of import restrictions via quotas. Price indications from Indonesia were recorded at $250/t FOB, while those from China were assessed at $265-270/t FOB, sources informed BigMint.

China sees 4th round of price cuts: China's metallurgical coke market remained under pressure as supply fell due to environmental measures and air pollution alerts. However, demand remained weak amid sluggish steel market activity and increased blast furnace overhauls. High feed coal costs also reduced price support, despite local supply cuts. On 19 December, met coke (exw-Tangshan, Hebei) was priced at RMB 1,660/t ($227/t).

Coking coal prices edge up w-o-w: Australian PHCC prices edged up by $1/t w-o-w to $205/t FOB yesterday. Prices have come down after rising earlier this week. With majority of restocking done ahead of the New Year holidays, subdued demand kept demand for coking coal cargoes weak this week.

Indian pig iron prices fall w-o-w: Steel-grade pig iron prices in Durgapur fell by INR 400/t w-o-w to INR 33,200/t exw. Additionally, tags in Ludhiana dropped INR 1,000/t w-o-w.

Outlook

The Indian met coke market is likely to remain under pressure in the near term, driven by subdued demand and cautious buyer sentiment in the steel sectors. Additionally, falling Chinese domestic coke prices have favoured the price drop in the domestic market. However, limited supply in the imported met coke and premium coal segments could provide some support to prices if procurement interest picks up.