Indian met coke prices remain unchanged w-o-w

Indian met coke prices have been recorded at INR 36,000/tonne (t) ex-Jajpur this week. Prices remained unchanged amid subdued trading activities in the market.

Some merchant coke oven plants are operating below full capacity and, in response to reduced imported offers, are choosing to blend imported met coke.

India's met coke imports in November 2023 rose by 7% m-o-m at 0.32 million tonnes (mnt), as against 0.30 mnt in October 2023.

Coking coal offers

Australian premium hard coking coal prices dropped by 4% on a weekly basis and are currently assessed at $335/t on 15 December 2023 amid low buying interest. According to market participants, pockets of demand were seen earlier coming from India, but part of those requirements have been fulfilled by materials of alternative origins, thereby lessening the buyers' appetite for Australian coking coal.

Steel product prices have strengthened lately so mills may continue re-stocking ahead of the Lunar New Year holidays, providing support to coking coal prices. Despite some mills experiencing losses, they are not substantial enough to trigger significant output cuts.

Imported coke prices

Chinese met coke prices are assessed at $377/t CNF India, for 65% CSR, CFR India. China's met coke producers have accepted third round of price hike of RMB 100/t ($14/t) on 13 December 2023 following the rise in coking coal prices. Effective prices of met coke in Hebei's Tangshan are assessed at RMB 2,460/t ($345/t). Coke producers continue output cuts by 20-30% to mitigate losses. Moreover, steel mills are not ready to agree to a fourth round of price hike.

Pig iron market

Indian pig iron prices rose by INR 200/t w-o-w and are assessed at INR 37,700/t DAP- Durgapur on 14 December 2023. Moreover, prices rose by INR 100/t w-o-w in the Raipur market and are currently assessed at INR 36,900/t DAP- Raipur.

Outlook

Indian met coke prices may witness a downward trend due to subdued buying interest and competitive imported offers. Additionally, the existing bid-offer gap in the market might prompt coke producers to lower their offers.