Speculation for Price Fall Keeps Indian Met Coke Market Atmosphere Dull

There is no interesting development in the Met Coke market in India. The market is dull as buyers are waiting, postponing purchases, for the global offers to come down to significant levels.

Offers from the key international market--China--have been falling as the Coking Coal prices are receding due to contraction in demand. In China, demand for Met Coke as well as Coking Coal has been declining as 50% of steel production in that country will go off-line from mid-Nov'17 to mid-Mar'18. The Chinese government has mandated the steel production cut to tackle high levels of atmospheric pollution.

The latest offer for the 64% CSR Met Coke is assessed at around USD 318/MT FoB China, down by around USD 8/MT over the week-ago rate. The recent offer for the 62% CSR Met Coke is assessed lower by around USD 8/MT, at around USD 308/MT, against the offer in the week last.

Source: CoalMint Research

For Indian buyers, these offers amount to: USD 333/MT and USD 323/MT respectively on CFR India basis.

In India, Met Coke buyers have postponed their purchases in view of the falling global offers. They are waiting for the offers to decline to significant levels before resuming purchases.

At the same time, Indian Met Coke producers have kept their ex-works prices at the rates revised last, without any change.

The prevailing ex-works prices for the Blast Furnace grade in the country are: INR 22,200/MT (east coast), and INR 27,000/MT and 30,000/MT (west coast).

Source: CoalMint Research