Indian met coke offers remain largely stable w-o-w

Indian met coke prices remained unchanged at INR 37,000-INR 38,000/t w-o-w. Indian market witnessed bearish sentiments for the week and also expected further price softening amid competitive seaborne offers. A market participant shared that the production is on the lower side and prices may face downward pressure due to imported coke offers.

Chinese coke prices drop

In the Chinese market, Met coke prices in Hebei's Tangshan were assessed at RMB 2,050/t ($303/t) on 25 May, stable w-o-w. Coke prices have stabilised with an eighth round of price cuts. As a result, profit margins have reduced. Some coking plants are reporting losses and coke supply has tightened. Chinese met coke prices fell significantly to $332/t CNF Hazira, down by $25/t w-o-w.

Coking coal offers fall

Australian premium hard coking coal (HCC) prices dropped by $3/t w-o-w on 24 May to $222/t. Market saw a rise previously but it has taken a setback again amid declining buying interest. There seems to be no significant change in demand for steel. Hence, the downward pressure on prices may continue to persist.

Indian steel scenario

SteelMint's benchmark bi-weekly assessment for hot rolled coil (HRC) (IS2062, Gr E250, 2.5-8mm) stood at INR 56,500-57,500/t ($682-694/t) exy-Mumbai on 23 May. Prices have dropped by INR 900/t ($11/t) w-o-w and by INR 200/t ($2/t) against the previous assessment on 19 May. Cold rolled coil (CRC) (IS513 Gr O, 0.9mm) prices also dropped by INR 900/t ($11/t) w-o-w to INR 61,500-62,500/t ($742-754/t) exy-Mumbai against price levels seen in the preceding week.

The decline in global HRC prices in May has made imports a viable option for Indian buyers. The softening of raw material prices is exerting further pressure on prices as buyers are cautious, and anticipating a further fall in steel prices.

Outlook

Indian met coke offers have stabilised. However, prices may see further downtrend due to better imported offers in India. Also, with declining steel demand and buyers being on sidelines, prices may continue to witness a downward pressure.