India: Imported met coke prices remain under pressure on sluggish trade

• Met coke imports to India fall over 40% m-o-m in July
  
  
• Awaited clarity on quota restrictions limits met coke import bookings
  
  

Imported met coke offers to India have continued to remain under pressure. Steel mills are hesitant to act as direct consignees or importers due to unresolved quota restrictions clauses.

Currently, the price indication for inferior quality with lower mean size $285-290/t CFR India, while for higher quality coke (with a mean size greater than 50mm and low moisture content), it is $305-315/t CFR India, depending on the vessel freights and size of the vessel.

Notably, towards end of June 2023, the Directorate General of Trade Remedies (DGTR) had embarked on a rigorous investigation into the significant increase in imports of low-ash metallurgical coke (below 18% ash). This proactive measure follows allegations raised by five leading companies (BLA Private, Jindal Coke, Saurashtra Fuels, Vedanta Malco Energy and Visa Coke), highlighting the adverse impact of rising imports on domestic producers. The DGTR had issued recommendations related to the government advocating imposition of safeguard measures amid rising metallurgical coke imports to address escalating trade challenges.

Met coke imports fall m-o-m in July

India's imports of met coke have reduced significantly by 42% in July, 2024 at 0.37 mnt as against 0.64 mnt in June, 2024.

Imports from Indonesia stood the highest at 0.2 mnt in July, 2024 largely stable on a monthly basis. China stood second largest exporter at 0.07 mnt, down by 76% on a m-o-m basis. Imports from Russia and Columbia increased during the month.

Outlook

Indian met coke market continues to show downward pressure on low buying interest and bid-offer disparity. The DGTR import restrictions continue to be awaited. Import volumes to India are likely to remain on the lower side due to drop in fresh bookings amid ongoing investigations.