India: Met coke prices remain unchanged w-o-w amidst mixed market sentiments

• Chinese mills accept first round of price cut
  
  
• Indian pig iron prices drop w-o-w
  
  

India's domestic met coke prices held steady this week. As per BigMint's assessment, the 25-90 mm blast furnace (BF) grade met coke stood at INR 33,400/tonne (t) ex-works Jajpur, while prices in Gandhidham remained unchanged at INR 29,600/t.

Market overview -

Imported met coke offers from Indonesia firm up: Met coke import offers are currently at $275/t FOB, with December arrival shipments now quoted above $300/t CFR India. Owing to falling port stocks of imported cargoes, prices may firm up, highlighted sources.

Coking coal prices up w-o-w: Australian coking coal PHCC prices edged up by 3% w-o-w to $204/t FOB yesterday. Prices have moved up on expectation of Chinese stimulus. Chinese end-users showed limited interest in procuring forward-delivery cargoes on a fixed-price basis. Uncertainty persists over whether Chinese mills will implement a second round of domestic coke price cuts this week, given mixed market signals. While expectations are rising for new stimulus measures in early November, domestic coking coal and billet prices weakened further during the day. However, Indian demand remained muted.

Chinese met coke price cut finds acceptance - China's metallurgical coke producers accepted a price reduction of RMB 50-55/t proposed by steelmakers last week, marking the end of six consecutive price hikes. Market participants are now anticipating additional price declines. Uncertainty lingers over whether Chinese mills will move ahead with a second round of domestic coke price cuts this week amid mixed signals. While expectations for additional stimulus measures in early November are building, domestic coking coal and billet prices have shown signs of softening.

Indian pig iron prices drop w-o-w: Steel-grade pig iron prices in Durgapur declined by INR 800 to INR 37,800/t exw, while those in Ludhiana decreased by INR 700/t w-o-w.

Outlook

India's domestic met coke prices have remained stable this week, though imported met coke offers strengthened slightly reflecting subdued bookings during the festive holiday period. Meanwhile, Australian coking coal prices rose 3% w-o-w driven by expectations of Chinese stimulus measures.

The Indian domestic met coke market may remain stable and minimal bookings are expected during this festive period. Besides, import bookings have not been heard recently. Market clarity will emerge only after the Diwali holidays.