Indian met coke prices continue to remain stable for second consecutive week

Indian met coke prices remained unchanged w-o-w at INR 34,500/t ex Jajpur. Prices in western India also remained range-bound w-o-w at INR 36,000/t ex Gandhidham. Imported met coke continued to be cheaper than domestic material. However, the gap between the two has narrowed.

Domestic coke manufacturers were heard operating at reduced capacity. A major eastern India-based coke producer has taken maintenance shutdown, although it is dispatching old orders.

Seasonal rains in India have affected domestic demand. Several parts of the country are under heavy rain alert for the next few days, as per the Indian meteorological department. In addition, its has been heard that some desperate sellers are selling at lower prices to liquidate material with the onset of monsoons.

Imported coke prices

Met coke prices in Hebei's Tangshan were assessed at RMB 1,860/t ($262/t), stable w-o-w. China's met coke prices were at $306/t (INR 25,278) CNF India. In the Chinese market, prices continued to remain range-bound.

Coking coal offers

Australian premium hard coking coal (PHCC) prices dropped to $227/t FOB yesterday (5 July), down $9/t w-o-w. The onset of monsoons has affected procurement of coking coal. Restocking for July loading cargoes is over, allowing some reduction in prices. Supply for August loading cargoes is improving with Australian miners starting to release more cargoes.

Pig iron market

Indian pig iron prices have picked up this week. Pig iron prices edged up to INR 41,000/t yesterday as against INR 40,800/t assessed the day before. Prices have increased from INR 40,500/t last week.

Outlook

Indian met coke prices seem to have bottomed out. Many end users are adopting a wait-and-watch policy, and prices are not expected to drop in the near term. With imported offers edging close to domestic levels, met coke prices are not expected to fall anytime soon.