Weekly recap: Global coal market trends (Week 33, 2024)

• Chinese steelmakers propose fourth round of coke price cuts
  
  
• Imported met coke prices in India fall, domestic offers remain under pressure
  
  
• Imported pet coke prices inch down w-o-w
  
  

Chinese Steelmakers Propose Fourth Round of Coke Price Cuts

Some Chinese mills in the Hebei region, particularly the Xingtai and Tianjin area, have proposed a price reduction of RMB 50-55/t ($6.99-7.69/t) effective from 15 Aug'24. The price for wet quenched met coke will be reduced by RMB 50/t, and dry quenched met coke by RMB 55/t. The third round of price cut had landed on 12 Aug.

India's Met Coke Import Prices Decline Week-on-Week

Met coke import prices in India have fallen to $260-265/t FOB for Indonesian coke. Merchant cokeries are purchasing more imported coke due to better realizations. Meanwhile, some domestic cokeries are reducing production levels to mitigate losses, opting to sell imported material to domestic steel mills instead. This shift highlights the growing preference for imported coke amid declining domestic production and competitive pricing.

India met coke prices face downward pressure on lower bids - Domestic met coke prices in India remained unchanged this week at INR 34,800/tonne (t). ex-works Jajpur. Merchant cookeries were heard offering at INR 35,000 levels. The drop in steel prices, driven by weaker demand during the monsoon season and competitive pressure from imports, has further depressed domestic met coke prices. Additionally, BigMint has gathered insights from West Coast mills suggesting that prices could potentially decline in the near term.

Indian Oil Increases Fuel Grade Pet Coke Prices for August 2024

Indian Oil Corporation Limited (IOCL) has raised fuel-grade pet coke prices for August 2024 deliveries. At Koyali refinery, road delivery prices increased to INR 11,360/t from INR 11,170/t. Panipat refinery prices rose to INR 12,350/t. Paradip and Haldia prices edged up to INR 10,590/t and INR 10,760/t, respectively. Additionally, rake loading prices at Paradip and Haldia increased by INR 200/t to INR 10,390/t and INR 10,560/t.

India: Imported Pet Coke Prices Slightly Decrease

Imported pet coke prices in India saw a slight decline of $1 week-on-week. Current prices range from $107-109/t CFR on the west coast and $109-110/t CFR on the east coast. The decline is attributed to reduced domestic consumption, particularly during the monsoon season when infrastructure demand is typically low. As a result, prices are expected to remain under pressure in the near term, reflecting the subdued market conditions during this period.

India: Portside South African Coal Prices Steady but Expected to Decline

South African coal RB2 prices remained stable at INR 9,650/t ex-Gangavaram, with RB3 (4800 GAR) prices at INR 7,700-7,750/t across Gangavaram and Vizag ports. Trade was muted due to low interest from major buyers, driven by weak industrial demand and slow construction activity amid ongoing rains. Thermal coal imports fell to a six-month low of 14.9 million tonnes in July. Despite stable prices, some bids have dropped to INR 9,300/t, indicating potential declines.

Indonesian Thermal Coal Portside Prices Decline Amid Weak Demand

Indonesian thermal coal prices have dropped due to subdued demand. At Kandla Port, 4200 GAR coal prices fell by INR 100 to INR 6,200/t, while 3400 GAR coal at Navlakhi Port held steady at INR 5,100/t. Prices for 5000 GAR coal at Vizag and Kandla remained unchanged. The ongoing monsoon in India and weak demand from China have contributed to the bearish sentiment, with Indonesian indexed prices for 4200 GAR coal dropping by $0.65/t to $51.18/t FOB.

Australian Premium Hard Coking Coal Drops 5% as South African RB1 Coal Prices Edge Up

Australian premium hard coking coal prices fell by 5% week-on-week to $204.5/t FOB, driven by ample September-loading cargoes and low buying demand. Meanwhile, South African RB1 (6000 NAR) coal prices rose to $110/t FOB, while RB3 prices remained stable at $75/t FOB. Portside prices for South African RB3 (4800 NAR) thermal coal at Vizag Port also held steady at INR 7,700/t.