India: Met coke prices edge down w-o-w

Indian met coke prices have been recorded at INR 34,000/tonne (t) ex-Jajpur this week. Prices fell slightly w-o-w due to sustained better import offers and reduced purchasing activity. Imported prices continued to offer more favorable returns than domestic materials. As per talks with market participants, a deal was heard to be concluded on east coast for 7000t of met coke at INR 35,000/t.

Another deal was heard to have been concluded for 10,000 t of met coke at INR 34,250/t east coast of India.

In yet another deal, west coast producer was also heard to have sold 7000t coke at 33000-33500/t.

Coking coal offers

Australian premium hard coking coal prices dropped by 4% on a weekly basis and are currently assessed at $312/t on 8 February, 2024. This drop is attributed to tepid demand from China due to the lunar holidays, while end-users in India were observed diverting their attention away from Australia due to production and delivery delays. Furthermore, Kembla Port in Australia is scheduled for maintenance shutdown from 12 to 15, February 2024.

Imported coke prices

Chinese met coke prices are assessed at $363/t CNF India, for 65% CSR, CFR India. Chinese coke offers heard throughout the week had stabilized, despite talk of a third coke price cut that could be implemented sometime after the Lunar New Year festival. Indian end-users were wary of their coke purchases as they monitored the coking coal segment.

Pig iron market

Indian pig iron prices dropped by INR 100/t w-o-w and were assessed at INR 38,500/t DAP Durgapur on 8 February 2024. Moreover, prices dropped by INR 100/t w-o-w in the Raipur market and are currently assessed at INR 37,250/t DAP- Raipur.

Outlook

Domestic met coke prices may continue to be range-bound on reduced prices of imported material. Prices may either drop or may maintain stagnancy due to unviable domestic offers. However, the declining prices of Australian coal might offer some stability to the coke market.