Indian met coke prices drop after 7 weeks on subdued demand
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- Premium coking coal prices fall on soft demand
- Coke prices trend down on declining pig iron offers
Indian met coke prices have dropped by INR 700/t w-o-w to settle at INR 34,800 per tonne ex-works Jajpur and a few merchant cokeries are heard offering at around INR 35,000/t.
Trades this week have remained subdued on low buying interest. Merchant cokeries are resisting price reductions due to uncertainties surrounding the import restrictions that the Directorate General of Trade Remedies (DGTR) has suggested. Currently, some producers have reduced offers while a few others are awaiting clarity amid a sudden hike in coking coal prices last week.
However, with the drop in prices of steel grade pig iron by INR 500/t to INR 37,600/t exw-Durgapur this week, met coke prices have also come under pressure.
A deal of 10,000 t of coke was heard concluded at INR 32,000-33,000/t in south India.
Chinese coke price hike talks halt
In the Chinese met coke segment, discussions regarding the second round of price hikes for domestic coke have remained on hold due to the softening of finished steel prices. Chinese suppliers are reportedly holding back their FOB offers to reassess market conditions.
It was heard that abundant coke stocks are available at Indian ports. With margins eroding due to the fall in steel product prices, it is expected that the impact on seaborne coking coal prices is inevitable.
Coking coal prices edge down
Australian premium hard coking coal (PHCC) prices dropped $4/t w-o-w to $252/t FOB w-o-w. Prices softened due to a persistent lack of buying interest for Q3 loading cargoes. This trend is occurring due to July-loading cargoes reportedly remaining unsold. Besides, reports on Anglo American's force majeure for Q4 shipments did not lead to buyers looking for replacement cargoes.
Buyers' bids in India were lower then the offer levels prevailing. However, buyers are anticipating a drop in prices with availability of fresh supplies. The supply of cargoes remains sufficient amid lack of demand in the market.
Outlook
Indian met coke prices are expected to remain stable or decline further on subdued buying interest and bid-offer disparity in the coking coal market. Also, with declining pig iron prices, the coke market is expected to come under further pressure in the coming days.