Indian met coke production up in July m-o-m on increased steel demand

India's met coke production increased by 9% m-o-m to 4.33 million tonnes (mnt) in July 2023 as against 3.97 mnt in June 2023, fuelled by an increase in steel demand, according to data maintained with CoalMint.

Out of the total production, merchant met coke output was 0.53 mnt, up significantly m-o-m, while captive production stood at 3.88 mnt, up 3% m-o-m.

India's met coke imports in July 2023 dropped to 0.23 million tonnes (mnt), as per CoalMint data. Imports dropped sharply by nearly 56% m-o-m compared to 0.52 mnt in June 2023. Imports dropped to monthly average levels in July after increasing sharply in June 2023.

Key steel market indicators

India's finished steel production stood at 10.532 mnt in July 2023. The volume was largely stable against 10.578 mnt in June 2023. Meanwhile, it rose by 9% y-o-y compared to 9.674 mnt in July 2022.

India's finished steel exports edged up by 3% m-o-m to 0.513 million tonnes (mnt) in July 2023 compared with 0.502 mnt in June 2023. Export volumes shot up by 35% y-o-y against 0.380 mnt in July 2022, as per provisional data released by the Joint Plant Committee (JPC) under the Ministry of Steel.

Crude steel production by Indian mills stood at 11.515 mnt in July 2023, up 3% from 11.205 mnt in June 2023. Moreover, the same increased by 15% y-o-y compared to 10.043 mnt in July 2022.

India's finished steel consumption stood at 10.261 mnt in July. Consumption was marginally up by 3% m-o-m as against 9.933 mnt in June. However, consumption rose by about 12% y-o-y compared with 9.178 mnt in July 2022.

Outlook

Indian met coke production is anticipated to rise due to an increased demand and an uptick being seen in imported offers recently. The Chinese prices have picked up recently after multiple rounds of hikes, thereby increasing export offers.