Indian met coke prices remain stable this week

Few merchant cokeries experiencing reduced production levels

Indian met coke prices have been recorded at INR 34,000/tonne (t) ex-Jajpur this week. Prices dropped by INR 500/t m-o-m compared to INR 34,500/t ex- Jajpur in February 2024.

Prices remained unchanged w-o-w amid subdued trading activities in the market. Certain merchant coke oven plants are operating below capacity and opting to blend imported met coke due to reduced imported offers. Elevated coking coal levels persist for cokeries, leading to reduced purchases. Low demand is observed for both coking coal and pulverised coal injection grades.

Coking coal offers

Australian premium hard coking coal prices dropped by 3% w-o-w, assessed at $304/t on 9 March 2024 amid sufficient material availability.

End-users maintained a weak outlook, influenced by increased spot availability from an Australian miner, reselling interest from an Asian coke producer, and existing prime coal offers from traders.

Few steel mills are evaluating seaborne prime coal offers but expressed reluctance to engage in trading amidst uncertainties in the domestic market. High levels of steel products inventory and slower-than-anticipated resumption of work at project sites contributed to the cautious sentiment. This environment has created a murky outlook for the market, prompting stakeholders to adopt a wait-and-watch approach before committing to transactions.

Imported coke prices

Chinese met coke prices are assessed at $346/t CNF India, for 65% CSR, CFR India.

China's met coke producers have accepted the fourth round of price cut on 27 February 2024 prompted by steel mills in Hebei and Shandong provinces facing depressed margins. Met coke prices in Hebei's Tangshan were assessed at RMB 2,060/t ($332/t), a fall of RMB 100/t ($14/t) d-o-d. Squeezed profits and sluggish demand led to suppressed production and weak market outlook. Recent cuts in Shanxi prime coal prices are expected to balance out prior coke price reductions, easing pressure on producers. The prospect of a fifth price reduction in Chinese coke prices has emerged, supported by declining Shanxi prime coal prices.

However, Indonesian coke sellers might not favour the idea of further price cuts, as they have witnessed price declines in line with Chinese coke.

Pig iron market

Indian pig iron prices remained stable w-o-w and were assessed at INR 38,300/t DAP Durgapur on 9 March 2024. Moreover, prices dropped by INR 50/t w-o-w in the Raipur market and are currently assessed at INR 36,250/t DAP- Raipur.

Outlook

Domestic met coke prices are anticipated to decline due to continuous availability of competitive offers and decreased purchasing activities. Moreover, declining imported prices are enticing end-users towards imports, potentially causing domestic coke prices to trend downwards in the near term.