India: Domestic met coke offers increase amid resistance from steelmakers

• Meeting held for considering applications for import restrictions
  
  
• Chinese mills accept seventh round of met coke price cut
  
  

India's domestic met coke prices remained stable this week. As per BigMint's assessment, the 25-90 mm blast furnace (BF) grade coke prices stood at INR 34,000/t exw-Jajpur, up by INR 1,200/t ($14) w-o-w, while Gandhidham's prices were at INR 31,500/t ($365) exw. Coke producers cited optimistic sentiments as offers witnessed a hike of INR 1,000-1,500/t ($12-17) w-o-w. However, buying interest at increased offers is yet to be seen.

"Buyers are having sufficient inventories of met coke which is still being offered at INR 29,000-30,000/t ($336-347) exw. Previously booked imported met coke cargoes are expected to arrive, which will add to the existing portside inventories. Therefore, price hike has not been completely reflected in the domestic segment," said a coke producer.

A special Exim facilitation committee (EFC) meeting was held with Director General of Foreign Trade, DGFT on 15 January to consider applications for granting import authorisations for import of low-ash metallurgical coke subject to country-wise QR. The EFC received 71 applications from 23 companies, including 18 industrial users and five trading entities. Applications were evaluated based on past import data, production capacities, and anticipated requirements.

Highlights of meeting held to consider applications for granting import authorisations for coke:

• Allocations prioritised operational continuity by matching applicant's past import averages and ensuring no disruption to their production.
  
  
• Traders have been allotted up to 1,500 t or their requested quantity, whichever is lower. They must commit to import on behalf of industrial users, avoiding resale in domestic markets. In case any applicant wishes to import the allocated quantity through traders/aggregators, provisions have been made in the system to support the arrangement. While considering such amendment applications from traders, it would be ensured that they are backed by authority letter(s) from actual user/allottees.
  
  
• Further, the traders/aggregator shall also be required to give a firm commitment that they will import the allotted quantity on behalf of actual user(s) and will not divert the same for further trading in domestic market.
  
  

Market drivers -

Australian coking coal prices inch down - Australian coking coal prices inched down w-o-w. PHCC was assessed at $188/t FOB Australia, down marginally by $4 against yesterday. Limited buying interest and fall in steel prices kept bids under pressure.

Chinese steel mills implement 7th straight coke price cut - China's metallurgical coke market implemented its seventh price cut amid weak demand and ample supply. Major steelmakers reduced coke purchase prices by 50-55 yuan/t, marking a total decline of 300-385 yuan/t since October. Thin margins persist despite some profitability at coking plants. Sluggish steel demand and high stock levels further pressure prices ahead of Chinese New Year.

Indian pig iron prices drop w-o-w - Steel grade pig iron prices in Durgapur, India, decreased by INR 350/t w-o-w to INR 33,000/t exw.