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Indian met coke prices remain unchanged for fourth straight week

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Met Coke

BigMint Bureau

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21 Jun 2024, 12:25 IST

Indian met coke prices remain unchanged for fourth straight week

Indian producers hold offers stable as market awaits clarity on import restrictions

Imported met coke offers to India inch down w-o-w

Chinese coke producers plan to lift offers by RMB 50-55/t ($7-7.6)

Indian met coke prices have been at INR 35,500/tonne (t) ex-Jajpur, stable on a weekly basis. The producers have been offering at above INR 35,000/t levels. However, trades have improved against last week.

Deals reported:

A deal was heard to have been concluded for 20,000t met coke at INR 34,750/t exw jajpur to multiple buyers.

A deal was heard to have been concluded for 10,000t met coke at INR 36,000/t exw jajpur levels.

Another producer closed deals for 10,000t met coke at about INR 35,500/t exw jajpur levels.

Imported coke offers to India inch down- The imported met coke prices continued to be cost-effective compared to the domestic material. The imported met coke offers from China-origin were at an average of about INR 29,000-30,000/t CNF India for the month as against INR 34,000/t in the domestic market. Chinese met coke prices have dropped by $4/t w-o-w to around $310/t CFR India. Indonesia's 65% CSR coke offers have reportedly dropped from $300/t FOB to $295/mt FOB this week due to persistent sales pressure among Indonesian coke producers, driven by weak buying interest from the markets.

Chinese coke industry faces split opinion on upcoming price hikeIn the latest update received, Chinese coke producers are pushing for price increases effective 21 June, 2024, attributing the move to rising feed coal costs, regional supply constraints, and heightened interest from certain steel mills. Despite their initiative, opinions within the market are sharply divided. If accepted, prices for wet- and dry-quenching coke would rise by RMB 50/t ($7) and RMB 55/t ($7.5) respectively.

During a meeting on 20 June, coke producers from major regions including Shanxi, Hebei, and Inner Mongolia agreed to raise coke prices by RMB 50-55/t. They also pledged to cease supplies to steel mills refusing the proposed price hikes, citing losses ranging from RMB 50-300/t due to elevated coke-making expenses.

Coking coal prices stable w-o-w

Australian premium hard coking coal (PHCC) prices remained stable at $256.50/t FOB w-o-w. Some market participants observed a slight weakening in market sentiment due to an Australian miner indicating an increase in the availability of July-loading cargoes. Sellers maintained stable offers, though many refrained from actively offering in the market as they continued to assess market trends.

It was heard that sellers might soon adjust their coking coal offers upward following the conclusion of an Australian PCI trade at a high level, which is expected to support metallurgical coal prices overall.

Supplies from Russia was heard to have been constrained so mill would have to pay higher to secure a cargo from Australia if they have urgent requirement.

Outlook

Indian met coke prices continue to remain in line with previous levels on awaited import quota recommendations. The Chinese met coke price hike is proposed today may affect the Indian prices. However, the falling demand continues to exert pressure on imported coke prices in India. Additionally, Indian pig iron (steel grade) prices fell by INR 750/t w-o-w to INR 37,000/t Ex-Durgapur on 20 June. Similarly, prices fell by INR 1,350/t w-o-w to INR 38,700/t DAP in the Raipur market. This may also weigh on Indian met coke offers.