India: Met coke prices decline in eastern India amid weak market conditions

• Chinese mills eye third round of coke price cut
  
  
• Indian pig iron prices see downward correction
  
  

Domestic met coke prices in India fell in parts of the country. According to BigMint's assessment, the 25-90 mm blast furnace (BF) grade met coke was priced at INR 32,800 per tonne (t) ex-works in Jajpur, down INR 600/t w-o-w with prices in Gandhidham holding firm at INR 29,600/t. Market participants shared that domestic prices are under pressure due to better import offers.

Deals this week:

- East side cokery sold around 10,000t met coke at INR 33,500-34,000/t exw-jajpur.

- Another deal for met coke for about 7000t heard concluded at INR 33,000/t exw-jajpur

- A east side cokery sold around 12,000t met coke at INR 32,500/t exw-jajpur.

India's met coke imports stood at 0.26 mnt in October as against 0.32 mnt in September. Indonesia and Japan were the largest exporters at 0.08 mnt each followed by Australia at 0.05 mnt.

Market overview -

Imported met coke market silent on limited offers from Indonesia: India's imported met coke market remained subdued w-o-w amid lesser number of trades. Indonesia's met coke supply for December shipments has been entirely sold out, with no price indications or allocations available for January. Sources indicated that European and Brazilian steel mills purchased in bulk from Indonesia as it remained the most competitively priced supplier. This is likely to push up offers for January shipments as some sources feel there could be a supply squeeze in the short term. Meanwhile, Chinese met coke offers to India are currently being heard at around $285/t FOB.

Coking coal prices rangebound: Australian coking coal PHCC prices edged up w-o-w to $206/t FOB yesterday. The Asian FOB metallurgical coal market held steady within a narrow range as market participants looked for clearer pricing signals, while the CFR China market softened due to a weakening yuan. The market is currently rangebound, with limited upward momentum. In the Chinese market, demand for forward-delivery cargoes was limited as mills aim to maintain low inventory levels to minimize the risk of potential declines in domestic prices. Also, Indian buying for coking coal remained muted

Third round of price cut awaited for Chinese coke: Chinese steel mills in Tangshan have implemented the second consecutive cut in met coke procurement prices, of RMB 50-55/t ($7-7.5/t), effective 11th Nov'2024. Reduced hot metal output brought down bids for met coke. Prices in Hebei's Tangshan stood at RMB 1,760/t. Discussions about a potential third round of coke price cuts in China surfaced on November 13, with expectations that mills would implement the reductions starting November 14, aiming to finalize them by the end of the week.

Indian pig iron prices drop w-o-w: Steel-grade pig iron prices in Durgapur declined by INR 400/t to INR 36,600/t exw, while those in Ludhiana increased by INR 250/t w-o-w.

Outlook

The metallurgical coke market in India is under pressure, driven by competitive import offers and a drop in domestic prices, especially in the eastern region like Jajpur. A third round of coke price reductions in China is anticipated by mid-November, which could impact export offers and affect the Indian market met coke prices.

Looking ahead, the Indian imported met coke market may see tighter supply conditions for January shipments. However, muted buying interest in India and limited forward delivery interest in China are likely to keep the market stable but cautious in the near term.