India: Metcoke import price rally continues as global supply tightness persists
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India's imported metallurgical coke prices continue to move upwards on persistent supply tightness amid improving steel production rate of blast furnaces across Asian countries.
Globally, spot prices for imported metallurgical coke have been rising consistently as a result of short supply led by robust import demand from China, the largest worldwide consumer of met coke.
China's domestic met coke supplies have tightened after widespread replacement and reduction of outdated coking capacities, while higher levels of steel production have boosted demand for blast furnace coke and prices within China.
The resultant stronger Chinese import demand for met coke has created availability tightness in the wider Asian seaborne metcoke market, giving rise to coking plants' willingness to push up prices.
Major metcoke producers in China's Shanxi and Hebei provinces had recently proposed a seventh round of price uptick and steel mills have had to accept the price adjustment proposal due to the prevailing tight supply situation.
Elsewhere, blast furnace coke prices have moved up fast, due to low inventory and production earlier in the year, and sudden increase in steel prices in Europe, Brazil, the US and in Asia increasing productivity. US and Canadian met coke is already trading in Atlantic markets on higher seaborne prices and demand.
CoalMint currently assesses the spot blast furnace metcoke price for the 64% CSR grade at $318/t CNF India, up 3.6% from 10th Nov.
The 62% CSR grade BF metcoke is currently assessed at $314/t CNF India -- also up by 3.6% from 10th Nov.
Meanwhile, India's domestically produced metcoke prices are relatively stable from past few weeks, supported by stable demand from the domestic steelmakers. Indian domestic metcoke prices of the 25-90 mm, blast furnace grade are currently hovering at around INR 23,000/t (east coast) and INR 23,500/t (west coast).
Indian met coke imports boosted by the re-emergence of steelmakers' demand
Indian met coke imports have increased for the fourth consecutive month in October as there has been moderate recovery in demand from domestic steelmakers notwithstanding the continued uncertainty related to COVID-19.
India imported 375,503 t of met coke in October -- up by over 44% m-o-m as against 260,665 t imported during the previous month of September.
More importantly, the country's met coke imports have surged by nearly 58% q-o-q to 584,828 in Q2 FY21 (July-September), compared with 371,069 t in Q1 FY21 (April-June).
India Coal Import Vessel Lineup
CoalMint's latest vessel lineup data (as on 11 Nov'20) reveals that an aggregate shipment volume of 140,852 t of imported met coke has arrived at different Indian ports last week - 49,482 t at Vizag, 44,000 t at Krishnapatnam port, 24,370 t at Haldia and 23,000 at Paradip.
These inbound met coke consignments have been sourced from different originating countries, viz. China (21,982), Colombia (23,000), Indonesia (27,500 t) and Poland (68,370 t).
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By Aditya Sinha
