Signs of Imminent Met Coke Price Fall Rippling though Market
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MARKET TREND
All commodity markets are susceptible to uncertainty. And this is making its presence felt in the Met Coke market. With the speculation were on the maximum levels to which the Met Coke prices might rise, with the up swinging Coking Coal prices; the speculations have now begun to focus on to what extent the Met Coke prices might go down, with the Coking Coal prices starting to decline since yesterday (12Mar'18).
With the sharp slide of around USD 14/MT exhibited by the Coking Coal prices yesterday, declines in the Met Coke prices are on the anvil. And, buying is likely to strengthen, given the buyers, especially in India, were waiting for the prices to come down before resuming active purchases.
The effect of the Coking Coal price decline was not yet shown on the domestic Met Coke prices in China. In the Shanxi region of that country, there was no change in the Met Coke prices, which were at around Yuan 1,870/MT.
PRICE TREND
The fall in the Coking Coal prices indicates the Met Coke prices to slip in the coming days. However, there has been no significant drop in the coke prices, albeit a slight dip.
The latest export offers for the 64% CSR Met Coke were reported at around USD 364/MT FoB China, a slight dip of around USD 1/MT over the offers reported the week-ago. In a similar trend, the recent offers for the 62% CSR Met Coke were reported at around USD 354/MT FoB China, which is a slight downward drift of around USD 1/MT against the offers reported in the week last.
Source: CoalMint Research
On CFR India basis, these offers translate into: USD 380/MT and USD 370/MT respectively.
In the meantime, a Columbian Met Coke offer was heard at around USD 372/MT FoB.
Indian Met Coke producers will lower their ex-works prices, if the global export offers come down under the influence of sliding Coking Coal prices.
The ruling ex-works prices for the Blast Furnace grade in India are at: INR 25,500-26,500/MT(east coast) and INR 26,000-27,000/MT (west coast).
