India: Met coke prices remain stable amid weak steel market sentiments
...
- Weaker steel market sentiments limit met coke trades
- Premium coking coal prices down $8.5/t w-o-w
- Chinese coke prices fall by RMB 50/t
Indian met coke prices this week remained almost in line with last week's prices at INR 34,800/t ex-works Jajpur. However, a few merchant producers were heard offering above INR 35,000/t. Indian met coke prices in the western region, too, remained unchanged during the week at INR 32,700/t.
Subdued steel market sentiments and stability in pig iron prices have weighed on met coke trades this week.
Imported met coke price indications were heard to have fallen by INR 3,000-5,000/t versus domestic coke. However, due to the wait for a concrete decision on import restrictions, fresh deals were not heard. An inter-ministerial meeting was scheduled for 15 July, 2024, to discuss the safeguard recommendations proposed by the Directorate General of Trade Remedies (DGTR) on imports of low-ash met coke. Organised by the Ministry of Commerce and Industry with other stakeholders, the meeting aimed to address potential import restrictions.
The outcome of this meeting will be crucial in shaping the future of met coke imports. Also, in talks with market participants, BigMint heard that the import quotas may be altered to benefit stakeholders before being implemented.
Some Chinese mills in the Hebei region, including Xingtai, Shijiazhuang, and the Tianjin area, have reduced their purchase bids for met coke. Consequently, the price for wet quenched coke has been cut by RMB 50/t, and for dry quenched coke by RMB 55/t. Coke prices in Hebei's Tangshan are assessed at RMB 1,910/t ($263/t), down RMB 50/t ($7/t).
Some Chinese coke sellers, anticipating two more rounds of price cuts following the initial reduction on 29 July, have refrained from making offers.
Chinese CSR 65% coke offers were heard at around 295/t FOB.
Coking coal prices fall
Coking coal prices fell on additional supply coming into the market. Availability of September loading cargoes was heard to be increasing. Despite prices being at attractive levels, Indian buyers seemed to be unwilling to commit to purchases. Bids from the Indian market remained at $200-210/t.
Amid persistent weakness in the steel market and the monsoon season in India, coking coal prices are expected to face additional pressure.
Also, buying by Chinese mills has remained subdued due to heavy rainfall in that country and prevailing uncertainties over production cuts and sufficient long-term supply from miners.
Outlook
