India: Imported met coke prices rise moderately, volumes dip

India-delivered seaborne metallurgical (met) coke prices continued to increase moderately on global demand amidst rising coking coal prices.

Japan-origin met coke delivered to India continued to move up on healthy demand.

CoalMint-assessed prices for CSR 64% blast furnace (BF) grade met coke inched up 0.3% to $607/tonne (t) in the first week of October from the previous $596/t, a slight increase of $11/t w-o-w.

On the other hand, India-delivered Columbian ultra-low phosphorus (ULP) nut coke prices rose moderately amidst increasing ferro alloy prices. For upcoming shipments, the product is being offered at $550-570/t CNF India, up 4.6% w-o-w, confirmed a major trading source.

Coking coal prices up amidst holidays

Australian premium low-volatile (PLV) hard coking coal FOB prices have been exhibiting an increasing trend, with China and other Asian countries on a seven-day Golden Week holiday since 1 Oct'21.

Although this trend did not lure any selling interest, the highest bid on the global COAL platform for Peak Downs premium hard coking coal was $395/t FOB Australia for early-December laycan, up $5/t FOB from its previous $390/t two days back; mostly due to higher post-monsoon restocking by Indian buyers amidst limited spot availability.

Simultaneously, prolonged shortages of both domestic and imported coking coal in China continued to affect its met coke inventory.

Increasing supplies from other Asian economies - Japan, Poland, Indonesia and South Korea - to meet rising demand, low inventory and supply shortage are resulting in a global supply tightness in met coke, consequently increasing global met coke costs.

The latest price of domestic met coke, with 12.5% ash content, in North China, remained firm at RMB 4,396/t ($681/t), up by RMB 535.81/t ($83/t) m-o-m.

Moderate dip in met coke imports

Met coke import volumes in Sept'21 were down 6.21% (1.62 lakh tonnes ) in comparison to 1.73 lakh tonnes in Aug '21; major shipments being received from Poland (70,000 t), Japan (33,000 t), South Africa (27568 t) and Columbia (32,263 t).

India-delivered met coke imports showed a declining trend because of a steady rise in their prices and ample domestic sourcing.

The country's domestic coke output, presently utilized at an optimum efficiency, is now able to meet domestic demand as well as deliver profitability in exports.

On the other hand, increasing met coke prices are compelling mid-to-small scale pig iron manufacturers to either reduce their production or shut down their operation. This is leading to a supply crunch in the merchant pig iron market, increasing demand in the process.

Outlook

India delivered met coke prices are expected to see further increase with persistent rise in coking coal prices.

With increase in coking coal costs, there is a possibility of a slowdown in procurements. Consequently, Indian met coke importers are expected to rely on the domestic material.

As a result of rising met coke prices and material shortage, Indian ferro alloy and pig iron prices are also expected to continue rising.