India: Met Coke import offers keep soaring on surging China demand

India's metallurgical coke import prices from different originating countries have continued to soar in recent months amid continued concerns on limited availability of spot tonnages across Asian markets.

CoalMint currently assesses the spot price for the 64% CSR grade Japanese blast furnace met coke at $357/t CNF India, up $12/t w-o-w.

The 62% CSR grade BF metcoke is currently assessed at $348/t CNF India -- also up by $12/t w-o-w.

Globally, met coke prices have constantly rallied on the back of persistent supply tightness arising from production cuts and replacement in China's Shanxi, Hebei and Shandong provinces.

A severe squeeze on Chinese coke supply has prompted an unprecedented rise in spot prices thereof. Higher domestic coking coal prices in China have pushed up the country's met coke export prices to such high levels which are incompetent against other exporting nations as well as Indian domestic merchant coke makers. Recent spot sale price of Chinese 64% CSR BF grade met coke delivered to India have hit around $420/t CNF India level.

The upward pressure on prices has come from a combination of huge growth in demand for coke in the Chinese steel industry and a shortage of coke export licenses which have led to a slump in Chinese exports.

The resultant squeeze in Chinese domestic coke supply caused end-users to opt for imported material, leading to a steady upward movement of global coke prices since early-August.

Industry experts predict the supply tightness to last until at least the next quarter, as supported levels of steel production are expected to continue boosting coke demand and prices.

India Coal Import Vessel Lineup

CoalMint's latest vessel lineup data (as on 7 Dec'20) reveals that an aggregate shipment volume of 135,709 t of imported met coke has arrived at different Indian ports since 27 Nov'20 --

- 62,993 t at Haldia (West Bengal)

- 13,345 t at Paradip (Odisha)

- 59,371 t at Vizag (Andhra Pradesh)

These inbound met coke consignments have been sourced from different originating countries, viz. Colombia (97,737), Poland (17,972 t) and South Africa (20,000 t).