India: Domestic met coke prices stable as market awaits clarity on DGTR's proposed import restrictions
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- Chinese met coke prices drop by $3/t
- Pig iron prices drop by up to INR 800/t w-o-w
Indian met coke prices have remained majorly stable w-o-w at INR 35,500/t ex-Jajpur after a sharp hike of INR 2,000/t was seen in the last week. The producers have seemed to pushed up the offers to above 36,000/t levels. In a recent letter addressed to the Secretary, Department of Commerce, the steel industry has expressed grave concerns regarding the imposition of "safeguard quantitative restrictions" on the import of low ash metallurgical coke (met coke) into India. The letter emphasises the critical role of met coke in steel manufacturing and the potential adverse effects of these restrictions on the industry.
The letter highlights the potential setback to the Indian steel industry, which has made substantial investments in existing capacities and future expansions. The restrictions are seen as counter-productive to the government's vision of making India self-reliant in steel production, a key element for manufacturing-led economic growth and infrastructure development.
In his concluding remarks, the steel secretary has appealed to the Secretary, Department of Commerce, to reconsider the DGTR's recommendations in the broader interest of the Indian steel industry. He stressed that maintaining an unrestricted import policy for met coke is vital for sustaining the industry's growth and ensuring its global competitiveness.
Coking coal prices
Australian premium hard coking coal (PHCC) prices edged up to $240/t FOB w-o-w against $239/t FOB a week ago. Prices had picked up during the week by $8/t.
Asian metallurgical coal prices stayed within a narrow range as market participants remained on the sidelines due to the lack of clear market direction.
Bidding interests could be expected due to tighter supply for July laycan, although uncertainties remain regarding the extent of potential price increases. The remaining June-loading cargoes should partially absorb end-user demand, thereby easing the upward price pressure on July-loading cargoes.
Imported coke prices
Chinese met coke prices have currently dropped by $3/t to around $314/t CFR India. Some Chinese suppliers were reported to have raised their offer levels to $323/mt FOB for end-June loading CSR 65 goods. However, the deals are unlikely to occur, given that Indonesia-based suppliers are pricing coke at around $300/mt FOB. Some sources remained doubtful about whether the coke price hike will be implemented, as coke inventories at Chinese cokeries remain comfortably high and mills are in no rush to restock.
Chinese coke producers were still anticipating an upward price adjustment, citing thinning margins for cokeries due to a well-supported domestic coking coal market. However, it still remains uncertain as to the declining steel consumption of Chinese mills during the week
Pig iron market
Indian pig iron (steel grade) prices fell by INR 300/t w-o-w to INR 41,500/t Ex-Durgapur on 24 May. Similarly, prices fell by INR 800/t w-o-w to INR 41,200/t DAP in the Raipur market.
Outlook
Met coke prices are expected to remain range-bound as the market awaits clear direction in met coke imports. The recent DGFT meeting has yet to provide guidance. However, anticipation of potential price changes has led to an increase in imported booking inquiries.
