Indian met coke prices continue to drop on subdued buying

Indian met coke prices have been recorded at INR 35,000/tonne (t) ex-Jajpur this week. Prices dropped by INR 1,000/t amid competitive imported prices.

Some merchant coke oven plants are operating below full capacity in response to decreased offers for imported coke, these plants are opting to blend in imported met coke.

India's met coke imports in November 2023 rose by 7% m-o-m to 0.32 million tonnes (mnt), as against 0.30 mnt in October 2023.

Coking coal offers

Australian premium hard coking coal prices dropped by 3% on a weekly basis and are currently assessed at $325/t on 21 December 2023 amid low buying interest. According to market participants, pockets of demand were seen earlier coming from India, but part of those requirements have been fulfilled by materials of alternative origins, thereby lessening the buyers' appetite for Australian coking coal.

Imported coke prices

Chinese met coke prices are assessed at $376/t CNF India, for 65% CSR, CFR India. China's met coke producers have proposed fourth round of price hike of RMB 100/t ($14/t). Effective prices of met coke in Hebei's Tangshan are assessed at RMB 2,460/t ($345/t). Some Chinese coke producers and traders observed that the current prices for Chinese coke remain relatively high in the global market, posing challenges in competing with alternative sources, such as Indonesian coke.

According to market participants, implementing the fourth round of price increases is proving challenging, as mills are showing resistance. Moreover, mills may consider proposing a price cut in the near term due to depressed margins.

Pig iron market

Indian pig iron prices dropped INR 100/t w-o-w and are assessed at INR 38,700/t DAP- Durgapur on 21 December 2023. Moreover, prices dropped by INR 200/t w-o-w in the Raipur market and are currently assessed at INR 36,800/t DAP- Raipur.

Outlook

Indian met coke prices might experience a decline in the near term owing to a significant disparity between domestic and imported coal prices. Imported prices are notably lower than domestic ones, leading end-users to favour imported coal, potentially causing a decrease in domestic coal prices.