Indian met coke prices stay range bound amid tight supply and stable demand

India's domestically produced metallurgical coke prices in the eastern region have held mostly steady until last week, though western zone prices have softened moderately.

Domestic met coke offers from cokeries in several parts of the country are being quoted at elevated levels, as rainfall-induced supply tightness has limited material availability, although buyers have yet to commit to higher bids.

However, seaborne coking coal prices have fallen sharply throughout the last week, as demand sentiment weakened amid growing panic over the impact of probable coal import restrictions in China. Accordingly, some cokeries may consider lowering offer levels in the light of decreased cost of producing met coke.

Latest offers for Australian premium hard coking coal are assessed at around $126.35/t on CNF India basis, with average spot prices having slumped by almost 14%, spurred by reports of China-bound coal-laden vessels being diverted elsewhere and customers deferring inbound shipments from Australia.

Meanwhile, the Indian spot demand for imported met coke has improved amidst the steady recovery in demand growth from the domestic steelmaking industry.

A surge in demand from the automotive and white goods sectors and moderate activity in government infrastructure projects are driving the recovery in domestic demand for steel products in India. Steel mills are heard fetching their full contracted term volumes while some are even heard to be seeking cargo advancements.

Indian met coke imports jump 50% in September

Indian met coke imports have increased for the third consecutive month in September as the spot demand for imported met coke has been recovering swiftly despite uncertainty over the impact that Covid-19 might have on shipments.

India imported 260,665 t of met coke in September -- up by nearly 55% month-on-month as against 168,331 t imported during the previous month of August.

More importantly, the country's met coke imports had surged by as much as 58% on the quarter to 584,828 in Q2 FY21 (July-September), compared with 371,069 t in Q1 FY21 (April-June).

India Coal Import Vessel Lineup

CoalMint's latest vessel lineup data (as on 16 Oct'20) reveals that an aggregate shipment volume of 112,333 t of imported met coke is expected to reach India in this month -- 66,836 t at Hazira, 23,000 t at Paradip, 14,700 t at Haldia and 7,797 t at Vizag port.

Notably, all of these inbound met coke consignments are being sourced from two countries, viz. Poland (66,836 t) and Colombia (45,497 t).

Price Assessments

Indian import prices of met coke are currently hovering at around $292/t and $288/t for the 64% CSR and the 62% CSR grades respectively on CNF India basis.

Indian domestic met coke prices of the 25-90 mm, blast furnace grade are currently assessed at around INR 23,000/t (east coast) and INR 23,500/t (west coast).

Chinese-origin met coke export prices are currently assessed at around $330/t and $311/t for the 64% CSR and the 62% CSR grades respectively on FOB North China basis.

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By Aditya Sinha