Indian Met Coke Prices Fall on Coking Coal Getting Cheaper

Met Coke prices in India have fallen as prices of Coking Coal declined.

Demand for Met Coke in the country has not yet picked up due to the uncertainty posed by the declaration of the GST rates on the subsequent market dynamics.

OFFERS RECEDE FURTHER

Met Coke offers from the key international market have receded further as Coking Coal prices continued to decline.

The latest offer for the 64% CSR Met Coke is assessed at USD 297/MT CFR India, down by USD 7/MT from the rate assessed the last week. The fresh offer for the 62% CSR Met Coke is also assessed down week-on-week by USD 7/MT at USD 294/MT CFR India.

Source: CoalMint Research

Exporters have quoted these offers at: USD 285/MT and USD 282/MT respectively on FoB China basis.

INDIAN PRICES FALL

Reacting to the downfall in the Coking Coal prices, Indian producers have lowered their ex-works prices. Producers in both the east as well as west coasts have reduced their ex-works prices by around INR 1,000/MT.

Thus, the ruling ex-works prices of the Blast Furnace grade in India are at: INR 21,500/MT (east coast) and INR 20,000-26,000/MT (west coast).

Source: CoalMint Research

In the meantime, demand in the Indian market has not yet picked up as buyers waited for clarity in the business environment after the GST rates were declared. The GST Council fixed a rate of 5% on coal, and the corresponding change in the Met Coke market dynamics is yet to be seen. Readers can get a complete update on the GST rate on coal at: GST Council Puts Coal in 5% Tax Slab: Electricity, Steel Production Costs to Go Lower

IMPORTS

As the buying activity has not yet picked momentum, imports were thus low. During the 1-19May'19 period, only 126,120 MT of Met Coke was imported into the country, according to CoalMint Research.