India: Met coke prices remain stable w-o-w amid subdued buying

Indian met coke prices stood at INR 34,000-35,000/tonne (t) ex-Jajpur, eastern India, this week. Prices remained largely unchanged w-o-w due to better import offers, coupled with reduced buying activity. Imported coke prices continue to provide better realisations compared to domestic material.

As the differential between coke and coal narrows, end-users are adopting a cautious wait-and-see approach during this period. International and domestic met coke markets saw limited trading activity, given that Indian coke consumers maintain ample inventories. Cokeries are currently facing a lack of profitability due to prevailing low prices.

Coking coal offers

Australian premium hard coking coal prices remained unchanged w-o-w and are currently assessed at $330/t. Market participants, including end-users, reported higher tradable indications during the week. This increase is attributed to the suspension of operations at major ports in Queensland. Weather conditions have played a supportive role in the free on board (FOB) market. Despite demand, extensive delays are prevalent, and cyclonic weather is expected to cause disruptions due to heavy rainfall.

Imported coke prices

Chinese met coke prices are assessed at $365/t CNF India for 65% CSR grade. Some Chinese mills in Hebei and Tianjin have accepted a second round of price cut by RMB 100-110/t as coke arrivals to mills surged, accompanied by difficulties in unloading trucks amid increased blast furnace suspension for maintenance ahead of holidays. Met coke prices in Hebei's Tangshan were assessed at RMB 2,260/t ($318/t). However, the third round of coke price cut is expected to take place because of slow and weak demand for steel.

Pig iron market

Indian pig iron prices dropped INR 150/t w-o-w to INR 38,350/t DAP Durgapur on 25 January. However, prices dropped INR 50/t w-o-w in the Raipur market and are currently assessed at INR 37,650/t DAP Raipur.

Outlook

Indian met coke prices may decline in the near term owing to a significant disparity between domestic and imported coal prices. Imported prices are notably lower than domestic material leading end-users to favour imported cargoes, potentially leading to a drop in domestic prices.