Indian met coke prices stable for the week

Indian met coke prices stood stable for the week at INR 37,000-INR 38,000/t.

In the Indian market, met coke's demand for trade was found to be on the lower side. Bids by buyers were lower than the current offering prices of met coke. A trade was heard concluded for 15,000 t at about INR 37,500/t.

Chinese coke prices drop

In the Chinese met coke market, the eighth round of met coke price cut by Yuan 50/mt was proposed on May 17 by several steel mills in Hebei province. This is going to be effective from May 18, according to sources. Met coke prices in Hebei's Tangshan were assessed at RMB 2,050/t ($303/t) on 18 May, down RMB 50/t w-o-w. Chinese met coke prices fell significantly to $357/t CNF Hazira, down by $13/t w-o-w.

In the Chinese market, coke enterprises have shown reduced interest in further expansion of production and some have decided to reduce production amid lower margins. Also, the ongoing blast furnace maintenance have also reduced mills' procurement needs.

Coking coal offers fall

Australian premium hard coking coal (HCC) prices dropped by $21/t w-o-w on 17 May to $225/t. After a brief rise in demand due to restocking, buying interest has again started declining, resulting in a fall in prices. Moreover, supply is abundant which is also putting pressure on coking coal prices.

Indian steel scenario

SteelMint's benchmark assessment (bi-weekly) for HRC (IS2062, Gr E250, 2.5-8mm) stood at INR 57,000-58,000/t ($693-705/t) exy-Mumbai as on 16 May. CRC (IS513 Gr O, 0.9mm) prices have remained range-bound at INR 62,500-63,500/t ($759-772/t) exy-Mumbai against price levels seen in the preceding week. The availability of cheaper alternatives in the overseas markets has weighed on export offers for Indian-origin HRC on the global trade platform.

Outlook

Indian met coke prices may not see much downtrend in the near-term as demand remains dull. Met coke prices have seen a continuous fall in last few weeks. Majority of buyers are on sidelines which may further inhibit price increase.