Indian met coke prices remain largely stable w-o-w

Indian met coke prices remained largely stable at INR 33,000/t ex Jajpur last week. Prices remain unchanged on low buying interest despite better imported coke offers. Some desperate sellers were heard offering at slightly lower levels. Offers of imported material and at NMDC auctions were at comparatively lower levels and preference for domestic material was low.

Imported coke prices

Chinese met coke prices continue to pick up. China's met coke producers have announced a fourth round of price hike of RMB 100/t ($14/t) d-o-d on 4 August amid low met coke inventory with mills and weather disruptions. Effective prices of met coke in Hebei's Tangshan are assessed at RMB 2,160 ($301/t). Rising domestic coal prices have provided impetus to met coke prices; however, it remains uncertain if the uptrend can sustain in view of potential production control targets in H2CY'23.

Coking coal offers

Australian premium hard coking coal (PHCC) prices picked up $9/t w-o-w at $246/t FOB on 3 August. Prices rose was amid buying interest at higher levels and low availability of cargoes. However, there is steady demand in the Indian market now, as buyers are looking for post-monsoon cargoes. Following the recent Chinese rally, it is expected that prices will rise in the near term.

Pig iron market

Indian pig iron prices have picked up w-o-w. Pig iron prices were recorded at INR 40,300/t yesterday as against INR 39,700/t last week. Prices have been stable d-o-d.

Outlook

Amid reduced margins and rising coking coal prices, met coke prices may not fall further. However, with better imported offers, domestic material is likely to witness lower buying preference and price pressure.