India: Met coke prices remain unchanged gauging market direction
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- Chinese cokeries accept second round of price cut
- Australian premium hard coking coal prices remain stable
In May 2024, India witnessed a 30% m-o-m increase in met coke imports, reaching 0.36 million tonnes (mnt) compared to 0.28 mnt in April 2024. The imports were on higher side due to persistent price difference in imported and domestic materials. The imported met coke prices continued to be cost-affective compared to the domestic material. The imported met coke prices were at an average of about INR 29,000- 30,000/t for the month as against INR 34,000/t in the domestic market.
The rise in imports was also due to fall in production which was recorded at 3.83 mnt in April, 2024 as compared with 4.32 mnt in March, 2024
Imported coke prices
Chinese met coke prices have been stable at around $314/t CFR India.
In the met coke segment, major mills in Hebei and Shandong provinces implemented a price reduction of yuan 50-55/mt, despite resistance from cokeries observed the previous day. This move followed an earlier reduction of yuan 100-110/mt in mid-May. Few commented that there was an oversupply of coke in China, supply and demand have now balanced, suggesting that prices may experience fluctuations.
In response to the domestic price adjustment, some Chinese suppliers of CSR 65% coke lowered their offers by $5/mt yesterday.
Chinese metallurgical coke producers were showing great resistance to the 50-55 yuan/t price cuts proposed on 11 June by several major steel mills in northern China's Hebei province and Tianjin city. At a meeting held on the afternoon of 11 June, coke makers from key production regions including Shanxi, Hebei, and Inner Mongolia decided to refuse the proposed price cuts amid still high coke-making costs and potential production decrease, vowing to stop supplies to steel mills reducing purchase prices.
Australian premium hard coking coal (PHCC) prices remain largely stable at $256.50/t FOB w-o-w against $256.25/t FOB a week ago. The metallurgical coal market inched up. It was heard that market prices have been up by the anticipated recovery in Indian demand, making it worthwhile to purchase cargo at current price levels.
Few traders maintained a bearish outlook on market direction, citing muted demand from China amid a declining domestic market and a lack of strong demand from India, whereas major steelmakers were in a wait-and-see mode as port stocks continued to accumulate.
The gap between offers and bids is existing, and July laycan cargoes are priced more aggressively than June cargoes
Pig iron market
Indian pig iron (steel grade) prices fell by INR 1,500/t w-o-w to INR 39,200/t Ex-Durgapur on 13 June. Similarly, prices fell by INR 1,100/t w-o-w to INR 40,000/t DAP in the Raipur market.
