Indian Met Coke production rises by 16% in December on improved steel sentiments

India's met coke production for December 2022 increased by 16% m-o-m to 3.81 mnt, according to data compiled with CoalMint. Out of the total production, merchant met coke production increased 32% m-o-m to 0.25 mnt, while captive production increased by 15% to 3.56 mnt.

The rise came in December as Indian government announced removal of export duty in late-November. Thus, the move motivated Indian mills to improve their crude steel output and prepare for finished steel exports in upcoming months. The Indian government had imposed export duty in late-April 2022 in a bid to preserve higher domestic supplies and control rising prices.

India's key steel indicators in December

India's crude steel production for December rose marginally to 10.5 mnt m-o-m. However, its steel exports rose 35% m-o-m to 0.58 mnt. Following the removal of the export levy, Indian mills booked significant volumes for December and January deliveries to the traditional markets of the Middle East, Vietnam, and Europe.

How was CY21 vs CY22?

The total met coke production for calendar year 2022 (CY22) increased by 4% against last year and stood at 43.6 mnt. With merchant met coke production at 3.19 mnt, a fall by 13% y-o-y and captive being 40.4 mnt, up by 5% y-o-y.

India's crude steel production inched down by 3% y-o-y to 113.88 mnt in CY22 compared to 117.63 mnt in CY21. Hot metal production also fell to 73.09 mnt in CY22 than 76.97 mnt in CY21.

India's finished steel export also decreased by 44% y-o-y to 10.37 mnt in CY22 than 18.5 mnt in CY21. However, finished steel imports surged 21% to 4.78 mnt last year as compared to 3.94 mnt in CY21.

Outlook

India's met coke production is likely to rise in coming months on the expectations of steady domestic steel demand in January-March 2023 quarter. In addition, Indian steel mills are now aggressively vying for export markets which is likely to support the met coke production. Chinese coke sellers are on their Lunar New Year break and will come back only in the beginning of February. This will lead to rebound in their steel and coke demand and their cheaper coke offers will reduce in the Indian market.