Indian met coke prices continue to slide

Indian met coke prices dropped this week by INR 500/t to INR 39,000/t as against INR 39,000-39,500/t last week.

"Prices are hovering at around INR 39,000-39,500/t. However, bulk deals have been concluded at INR 38,500/t," a market participant informed.

Factors impacting coke prices:

Chinese coke prices drop

Chinese met coke prices dropped significantly to $404/t CNF Hazira, down $9/t w-o-w. In the Chinese market, activity was subdued due to the fifth round of price cuts which may be followed by further price cut announcements. China's met coke producers accepted the fifth round of price cuts on 27 April, 2023 amid low demand from steel mills. Notably, prices have fallen by 15% since 1 April. Met coke prices in Hebei's Tangshan were assessed at RMB 2,300/t ($332/t) on 27 April, down RMB 100/t ($15/t) d-o-d.

Australian coking coal offers fall

Australian premium hard coking coal (HCC) prices fell by $26/t w-o-w to $232/t FOB, as assessed on 28 April. Prices fell significantly during the month by $69/t from the $301/t in the beginning of the month. There is ample spot supply whereas demand from Chinese and other Asian buyers is limited.

Steel prices down

Softening global HRC prices have slowed down market activities. Moreover, participants are now looking forward to mills' list price announcements for May 2023 sales. The slow overseas market weighs on HRC export offers from India. This was the key reason behind cautious buying in the domestic market. SteelMint's benchmark assessment of HRC (IS2062, Gr E250, 2.5-8mm) stood at around INR 62,300/t exy-Mumbai in March which dropped to INR 60,100 in April.

Outlook

Indian met coke prices may continue the downward trend amid falling global offers and softening demand. However, summer restocking by Indian mills may result in resumption of buying to some extent before the onset of monsoons.