India met coke prices still under pressure, trades subdued

• Chinese mills begin first round of met coke price hike
  
  
• Imported offers into India stay unchanged w-o-w
  
  

India's domestic met coke prices remained stable on a weekly basis, after hitting a four-month low last week. According to BigMint's assessments, the benchmark 25-90-mm blast furnace (BF) grade met coke was priced at INR 33,500/t exw-Jajpur. Prices in Gandhidham, however, reduced by INR 700/t to INR 29,800/t levels.

However, buying pattern continues to remain weak amid competitive imported offers. Market participants informed, western India producers may cut offers further in the coming days.

Deals for the week

In the west side, met coke was sold about 5,000t at INR 28,000/t, exw-Gandhidham.

East side merchant cokeries sold 20,000t met coke at INR 34,000-34,500/t exw-Jajpur levels this week.

Factors impacting Indian met coke prices

Imported met coke offers hold steady w-o-w: Imported met coke offers to India were stable w-o-w at around $235/t FOB from Indonesia and $225/t FOB from China. According to sources, while coke prices have bottomed out, there are limited fresh bookings in the market. Most purchases have been for material already available at ports.

China's met coke producers raise offers: Chinese coke producers implemented their first price increase on 19 September, breaking a streak of eight consecutive price reductions that had persisted since late July. Some steel mills in northern China have accepted the first round of metallurgical coke price increases, with hikes of RMB 50-55/t. However, key mills in Hebei and Shandong provinces have not yet made any official announcements.

Coking coal prices remain unchanged w-o-w: Australian coking coal prices remained largely unchanged at $180/t, FOB Australia. Prices have been largely stable on China's return to the market with users in a wait-and-watch mode. The coal market is still heard to be under pressure amid excessive supply.

Outlook

The Indian met coke market is expected to remain under pressure on subdued demand and comparatively inexpensive import offers. However, the turnaround in the Chinese met coke market may provide a push to domestic prices, provided demand picks up.