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

• India's prices under pressure due to muted trade
  
  
• Chinese met coke may see another price slash
  
  

India's domestic met coke prices remained largely stable w-o-w amid weak market sentiments. 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 prices were under pressure due to muted trading activities.

Market overview

Coking coal prices hold steady w-o-w: Australian PHCC prices remained largely stable w-o-w at $203/t FOB yesterday amid a significant gap between offers and bids.

The Chinese market, a key importer of Australian PHCC, remains subdued, with future market direction largely hinging on winter restocking demand. Presently, mills are in no rush to replenish stocks due to the lack of severe weather conditions this winter. Additionally, some steelmakers have reportedly put their blast furnaces under maintenance for the rest of the year, which may reduce coking coal demand.

Chinese met coke market may see another price cut soon:As the Chinese coking coal market continues to soften, several coke producers believe that steel mills may implement a fourth consecutive round of price cuts by late November or early December. However, a source from a coke plant noted, "Any further reductions are likely to face strong resistance from cokeries, many of which have already approached their break-even points following the third straight round of adjustments."

Indian pig iron prices drop w-o-w:Steel-grade pig iron prices in Durgapur declined by INR 600/t w-o-w to INR 33,700/t exw, while those in Ludhiana fell by INR 800/t w-o-w.

Outlook

The Indian met coke market is likely to remain under pressure in the near term, due to muted trading activities and low market sentiment keeping prices stable or slightly subdued. In China, prices will be shaped by mills' willingness to implement a fourth round of reductions, which could face resistance from cokeries. Meanwhile, Chinese coking coal prices are expected to remain range-bound, driven by uncertainties around winter restocking demand and subdued steel production due to maintenance shutdowns.