India: Met coke prices remain under pressure on subdued demand, global cues

• Indian met coke market under pressure
  
  
• Chinese coke market uncertain about 4th price cut
  
  

India's domestic met coke prices remained mostly unchanged w-o-w amid subdued market sentiment. As per BigMint's assessment, the 25-90 mm blast furnace (BF) grade was priced at INR 32,700/t ($386/t) exw-Jajpur, while Gandhidham prices edged down by INR 100/t to INR 29,400/t ($347/t). Market sources indicated that low trades and subdued demand have weighed on prices.

Market overview

Imported met coke prices to India fall in recent trades - Imported met coke offers from Indonesia fell to $275-280/t CFR India. Recently, a deal for approximately 50,000 t was confirmed at $280/t CFR India. Competitive pricing in the import market continues to attract buyers' interest, surpassing domestic met coke procurement.

Uncertainty over fourth round of Chinese coke price cut: Reports suggest that steel mills have reached a preliminary agreement to propose a fourth-round of coke price cut tomorrow. The proposal is expected to gain acceptance by either the following day or next Monday.

Domestic steel mills and coke producers are in talks over a potential fourth consecutive price reduction. Steel mills are pushing for lower procurement costs due to weak steel prices and subdued end-user demand during the winter season. This has intensified their focus on cost control to mitigate further losses.

Coking coal prices hold steady w-o-w: Australian PHCC prices remained largely stable w-o-w at $202/t FOB yesterday. Asian prime metallurgical coal prices remained stable on an FOB basis, while delivered prices to China saw a slight decline. Increased competition from domestic supply and lower portside prices dampened buying interest. Prime coal prices continued to face downward pressure due to subdued demand in India and waning interest from Chinese buyers. Several cargoes remained unsold, reflecting lacklustre market activity.

Indian pig iron prices edge up w-o-w: Steel-grade pig iron prices in Durgapur rose by INR 100/t w-o-w to INR 33,800/t exw, also those in Ludhiana picked by INR 200/t w-o-w.

Outlook

Indian met coke prices may remain under pressure due to weak demand and expected price cuts. Competitive import offers could further weigh on domestic prices, while the coking coal market faces pressure from limited buying interest. Any recovery will depend on improved demand from China and change in dynamics of the Indian market.