Indian met coke offers stable as persistent low demand prompts reduced production

Indian met coke prices remain unchanged w-o-w at INR 34,000-35,000/t ex Jajpur. Prices in western India also remain rangebound w-o-w at INR 36,000/t ex Gandhidham. Imported material is comparatively cheaper compared to domestic coke.

An major eastern India-based manufacturer was heard having concluded a deal at INR 35,000/t ex-Jajpur for about 10,000 t.

Indian met coke producers are operating at 30-35% capacity amid increased imports. Also, many facilities have shut down opeations due to loss in market share.

Investigating imports

Metallurgical coke manufacturers in India - BLA Private Limited, Jindal Coke Limited, Saurashtra Fuels Private Limited, Vedanta Malco Energy Limited and Visa Coke Limited - have filed an application for investigation of imports of low-ash met coke into India.

The applicants have said that there has been a sudden sharp increase in import volumes of the material which is posing a threat to domestic manufacturers.

India imported about 3.6 mnt of coke in FY23. Imports in June rose 103% m-o-m at 0.5 mnt against 0.23 mnt in May, as per data from CoalMint. India imported the largest share of coke from China at 0.15 mnt followed by Poland at 0.06 mnt.

Met coke production in June stood at 3.97 mnt, including 0.22 mnt by merchant players.

Imported coke prices

Met coke prices in China's Tangshan were assessed at RMB 1,910/t ($265/t) on 8 June, rising RMB 50/t ($7/t) d-o-d. China's met coke producers announced the first round of price hike on 8 June. The hike came on the back of increased demand from steel mills and reduced margins due to rising coking coal prices.

China's met coke prices were at $304/t (INR 25,278) CNF India. In the Chinese met coke market, a major cokery proposed a second round of hike by RMB 50/t.

Coking coal offers

Australian premium hard coking coal (PHCC) prices dropped to $221.50/t FOB yesterday (12 July), down $5.5/t w-o-w. The onset of monsoons weighed on prices. However, supply for August loading cargoes is improving with Australian miners starting to release more cargoes.

Pig iron market

Indian pig iron prices have dropped down this week. Pig iron prices dropped to INR 39,800/t* yesterday as against INR 40,300/t assessed the day before. Prices have decreased from INR 41,000/t last week.

Outlook

India met coke market witnessed dull trades on cheaper import prices. Prices were heard to have been bottomed out and merchant cokeries are not expected to reduce prices amid falling margins at current coal prices.
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