Indian met coke prices stable as market awaits clarity on DGTR import restrictions
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- Chinese imported coke offers down by $13/t w-o-w
- Australian coking coal prices drop on sufficient supplies
Indian met coke prices have remained unchanged w-o-w at INR 35,500/tonne (t) exw-Jajpur. The offering by merchant cokeries are at around INR 35,000/t levels. However, trades have reduced against last week. A deal was heard to have been concluded for 3,000 t met coke at INR 33,500/t exw-Gandhidham. The merchant cokeries were limiting any price drop on unclear market directions over the Directorate General of Trade Remedies (DGTR) import restrictions.
Chinese met coke prices have dropped by $13/t w-o-w to around $297/t CFR India for 64% CSR. Chinese suppliers kept their FOB offers stable in the last couple of days as they await more clarity on a potential domestic coke price increase. The Indian end-users have lowered import bookings for July loading and are into booking August-loading cargoes. For the same reason, import bookings have dropped in the past weeks.
Negotiations between cokeries and mills remained stalled. Meanwhile, Indonesian suppliers are considering revising their offers, with some producers suggesting tradeable prices below $290/t FOB Indonesia for CSR 65% coke.
Some Chinese mills have announced their acceptance of a price hike of RMB 50-55/t, one week after it was proposed by cokeries due to low inventory. As blast furnaces gradually resumed operations, steel mills maintained high activity levels, resulting in increased molten iron output. The ongoing depletion of existing coke stocks led mills low on inventory to purchase more of this crucial steel-making material.
On the supply side, coking plants reported normal production and smooth sales, with low inventory levels. However, the last two rounds of price cuts have eroded their profits, bringing them down to break-even points. However, with current price levels, steelmakers are experiencing very thin profit margins.
There appears to be sufficient gap between miners' and traders' offers. Also, Indonesian material is being offered at levels quite below that of Chinese coke. The Indonesian miners were facing pressure due to unsold cargoes and hence have slashed their offer levels.
Coking coal prices drop w-o-w
