India: Met coke prices decline w-o-w on bearish market sentiments, global cues

• Chinese met coke may see 4th consecutive price cut
  
  
• Pig iron prices witness steep drop on a weekly basis
  
  

India's domestic met coke prices edged down by INR 100/tonne (t) w-o-w this week amid subdued market sentiment. According to BigMint's assessment, the 25-90 mm blast furnace (BF) grade stood at INR 32,700/t ($387/t) exw-Jajpur, while prices in Gandhidham were at INR 29,500/t ($349/t). Market participants stated that domestic prices are under pressure due to better import offers.

Deals this week

- An eastern India-based cokery sold around 5,000 t at INR 32,500 exw-Jajpur.

Market overview

Imported met coke offers remain stable w-o-w: India's imported met coke prices were heard at around $260-270/t FOB for material from Indonesia for January laycans. However, Indonesia is not offering cargoes for December. Sources pointed out that Chinese coke offers are at $285/t FOB, with shipments majorly being directed to Europe.

Coking coal prices fall w-o-w: Australian PHCC prices fell to $203.5/t FOB yesterday, down $2.5/t w-o-w. Tags declined, as several cargoes remained unsold after being available in the market for several days. Buyers were also reluctant to raise their bids for Australian coal. Some market participants expressed optimism that the Chinese market might receive near-term support from winter restocking demand by end-users. Meanwhile, Indian demand remained dull.

Chinese met coke sees 3rd straight price cut: China's met coke market implemented a third consecutive price cut on 18 November, driven by subdued purchases by mills and declining steel prices. Major steelmakers reduced procurement rates by RMB 50-55/t, intensifying pressure on coking coal prices. While Shanxi miners slashed rates to stimulate sales, a series of auction failures reflects tepid demand. Low trade activity and winter restocking delays added to market challenges. Rumours of a fourth round of coke price cut persist, but temporary support has emerged as steel prices show signs of stabilising.

Indian pig iron prices drop w-o-w: Steel-grade pig iron prices in Durgapur declined by INR 2,000/t w-o-w to INR 34,300/t exw, while those in Ludhiana fell by INR 1,100/t w-o-w. Improved merchant supplies have resulted in a drop in Indian pig iron prices.

Outlook

The Indian met coke market is likely to face continued pressure in the near term due to subdued demand and competitive pricing. At the global level, winter restocking in China may offer temporary relief, but any sustained recovery will depend on macroeconomic conditions and steel market dynamics.