India's met coke prices remain stable w-o-w, trades turn slow

• PHCC prices surge this week on availability crisis
  
  
• Indian met coke imports rise in June'24, fresh booking remains slow
  
  

Indian met coke prices have remained steady w-o-w at INR 35,500 per tonne (ex-works Jajpur). Few merchant cokeries are also offering prices around INR 35,000 per tonne. However, trading activity has decreased compared to the previous week. Merchant cokeries are resisting price reductions due to uncertainties surrounding the Directorate General of Trade Remedies (DGTR) import restrictions. Also, they are currently holding onto offers amid awaited clarity in coking coal prices which have significantly surged this week letting met coke market unclear. Hence, no significant deal were recorded during the week.

Although Indian met coke imports in June'24 have picked up to 0.64 mnt as against 0.36 mnt in May'24. China stood the largest exporter at 0.38 mnt, up by around two folds m-o-m. Indian imports from Indonesia stood at 0.07 mnt followed by Poland at 0.06 mnt. However, fresh bookings have slowed down amidst awaited clarity on DGTR restrcitions.

Imported coke offers to India may rise

Market discussions have surfaced indicating that Chinese coke producers may initiate a second price hike this week, driven by stable hot metal production and low coke inventory levels. However, sources suggest that any proposed price increase is expected to encounter strong resistance from mills.

Indonesian producers were heard to have raised their offer levels for coke to about $290/t FOB levels for 65% CSR. Also, latter some Chinese met coke offers were heard to have revised to $315/t FOB levels for 65% CSR.

Coking coal prices surge this week following Anglo's incident

Australian premium hard coking coal (PHCC) prices picked sharply by 7% to $256/t FOB w-o-w. Prices picked sharply by $11/t this week in two days. The price rise was driven by uncertainty surrounding the resumption of Anglo American's Grosvenor mine. Additionally, deals for August-loading cargoes were concluded at higher levels amid supply concerns, with awaited clarity over the delivery of July laycan cargoes by Anglo and unexpected rains in Queensland.

Anglo American has temporarily ceased operations at its Grosvenor steelmaking coal mine in Queensland, Australia, due to an underground coal gas ignition on 29 June, 2024. The fire broke out in the mine and halted production. Assessing the situation and planning a safe re-entry into the mine is expected to take several months, given the probable damage underground. The mine contributes 30% to Anglo's total met coal production. Traders who bought July laycan cargoes were not offering in the market due to uncertainty over cargoes on time delivery.

The Asian metallurgical coal market saw a slight decline in the prime coal segment on yesterday, as supply concerns eased following Anglo American's announcement that cargo deliveries would likely occur in quarter three.

Outlook

Indian met coke prices expected to remain stable as producers preferred holding offers on sudden surge in coking coal prices during the week. Chinese met coke producers may go for second round of price hike which may affect the price and domestic met coke market.