Indian met coke prices stable on weaker buying interest

Indian met coke prices remain largely stable w-o-w at INR 34,000-35,000/t ex Jajpur. Prices in western India also remain range-bound w-o-w at INR 36,000/t ex Gandhidham. The prices remain stable amid competitive imported offers.

India imported about 3.6 million tonnes (mnt) of coke in financial year 2023 (FY23). Imports in June rose 103% m-o-m at 0.5 mnt against 0.23 mnt in May, as per data from CoalMint. India imported the largest share of coke from China at 0.15 mnt followed by Poland at 0.06 mnt. Imports from China were higher amid a price differential observed in domestic and imported materials. Imported materials were at comparatively cheaper levels than domestic coke. Domestic industries on losing the market share reduced the production and operational capacities and started operating at 30-35% capacity.

Met coke production in June stood at 3.97 mnt, including 0.22 mnt by merchant players.

Imported coke prices

China's met coke producers have announced a second round of price hike of RMB 50/t ($7/t) on 18 July, 2023. Prices were raised in response to an increased steel demand in China and a hike in domestic coal prices recently. Effective prices of met coke in Hebei's Tangshan are assessed at RMB 1,960/t ($273/t). China's met coke prices were at $308/t (INR 25,253) CNF India.

Coking coal offers

Australian premium hard coking coal (PHCC) prices picked up to $237/t FOB yesterday (20 July), up by around $15/t w-o-w. The prices rose tracking stronger market cues following trades being concluded at higher levels. Australian miners have started releasing more cargoes. There were higher demand coming from Vietnam and Indonesia supporting high tradable levels. Some demand was seen from Indian end-users for low-ash coking coal and pulverised coal injection.

Pig iron market

Indian pig iron prices have dropped this week. Pig iron prices dropped to INR 39,600/t today as against INR 39,800/t assessed the day before. Prices have decreased from INR 40,300/t last week.

Outlook

Amid reduced margins and rise in coking coal prices, merchant cookeries may not reduce prices any sooner. With coke manufacturers appeal to impose safeguard measures on imports to protect the domestic industries, may lead to some change in procurement scenario by end-users in the near-term.