Indian Met Coke Prices Start Descending on Falling Coking Coal Prices

Met Coke prices have started falling in India, being pulled down by the falling Coking Coal prices. At the same time, demand in the country has gradually started reviving.

OFFERS SLIDE DOWN

International Met Coke offers have declined further due to sliding prices of Coking Coal. The latest offer for the 64% CSR Met Coke is reported lower by USD 9/MT at USD 304/MT CFR India than the week-ago rate. In a similar trend, the recent offer for the 62% CSR Met Coke is reported at USD 301/MT CFR India, down by USD 9/MT from the rate reported last week.

Source: CoalMint Research

Exporters have quoted these offers at: USD 291/MT and USD 288/MT respectively on FoB China basis.

DOMESTIC PRODUCERS START LOWERING PRICES

The decreasing Coking Coal prices have incited the Indian Met Coke producers to lower their ex-works prices. The prices were reduced within the range of INR 2,500-4,000/MT by some producers in the east as well as the west coasts of the country. However, not all the producers in the country have decreased their ex-works prices. The producers which have kept their prices unchanged are likely to lower their prices in the coming days.

In an interesting fact, one producer in the west coast has increased its ex-works price by INR 1,000/MT in view of the rising demand in the near term.

The current ex-works prices of the Blast Furnace grade in India are: INR 25,500/MT (east coast) and INR 21,000-31,000/MT (west coast).

Source: CoalMint Research

IMPORTS

Imports of Met Coke have not yet gained momentum as buyers in India were waiting for the offers to fall to significant levels.

During the 1-12May'17 period, only 102 '000MT of Met Coke was imported into India, according to data compiled by CoalMint Research.