Indian met coke prices slide down on falling global prices

Indian met coke prices slided down to INR 37,000 as against INR 37,500/t assessed last week. The prices continued to drop for another consecutive week on lower buying interest.

The weaker steel prices continue to exert pressure on met coke prices in domestic market. The Chinese met coke continues to be imported in Indian domestic market on better import offers.

Chinese coke prices drop

China's met coke producers have accepted the eleventh round of price cut on 6 June 2023 due to continued fall in demand. Notably, prices have dropped by RMB 140/t ($20/t) since 1 June. Met coke prices in Hebei's Tangshan fell by RMB 90/t ($13/t) and is assessed at RMB 1,860/t ($262/t). China's met coke prices fell significantly to $291/t CNF Hazira, down by $27/t w-o-w.

Coking coal offers

Australian premium hard coking coal (HCC) prices remained at $229/t in May, inching up by $5/t w-o-w. A little demand still exists in the Indian market. However, demand has significantly weakened from last month as most buyers have already finished restocking prior to monsoon in India.

Indian steel scenario

SteelMint's benchmark bi-weekly assessment for HRCs (IS2062, Gr E250, 2.5-8mm) stood at INR 55,300/t exy-Mumbai (down INR 500/t) on 6 June. CRC (IS513 Gr O, 0.9mm) prices also dropped by INR 600/t ($7/t) w-o-w to INR 60,200/t exy-Mumbai (down INR 600/t) against price levels seen in the preceding week. Trade reference prices of HRCs and CRCs are likely to remain under pressure in the near term amid cheaper import options and the cautious approach of buyers.

Outlook

Indian met coke prices are expected to see further correction in coming weeks on falling buying interest and an upcoming monsoon. Also, with declining steel prices and buyers being on sidelines, met coke prices may continue to witness downward pressure.