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Indian met coke prices unchanged w-o-w on reduced buying interest

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Met Coke
By
BigMint Bureau
164 Reads
4 May 2024, 13:39 IST
Indian met coke prices unchanged w-o-w on reduced buying interest

Indian met coke prices have been recorded unchanged at INR 32,500/tonne (t) ex-Jajpur, in line with last week. Prices remained unchanged on approaching monsoon reducing buying interest by major procurement companies.

Indian met coke imports have been recorded at 0.28 mnt in April, 2024 as against 0.22 mnt in March, 2024, as per data maintained with BigMint.

Coking coal prices

Australian premium hard coking coal (PHCC) prices dropped by 2% w-o-w to $240/t FOB and $257/ t CNF on 4 May, 2024 amid trade concluded at lower level. Prices of the Asian metallurgical coal market remained range-bound amid Labour Day holidays.

While there were still some areas of demand, end-users were hesitant to finalise deals due to doubts about current coal prices, which appeared to be out of sync with market realities. In the quiet Labour Day holiday market, a significant trade of premium low-vol hard coking coal to Japan's JFE caught attention. Reports indicated slow demand overall, with buyers exercising caution and waiting for prices to adjust further before making commitments.

Ahead of the monsoon season, most Indian steel producers had completed their procurement, although a few mills remained cautious, anticipating price reductions before re-entering the market in the coming month, as per sources.

Indian steel producers were operating with reduced inventories compared to historical levels, with minimal anticipated impact from the monsoon on the east coast. Additionally, Indian steelmakers have diversified their sources by purchasing prime hard coking coal from alternative origins like the US, resulting in decreased monthly demand for Australian prime hard coking coal.

Imported coke prices

Just a week after the third Chinese coke hike took effect, another round of price hike took this week. China's met coke producers have accepted the fourth round of price hike on 1 May, 2024. Met coke prices in Hebei's Tangshan were assessed at RMB 2,060/t ($285/t), an increase of RMB 100/t ($14/t) d-o-d.

Despite the current holiday-induced market lull in China, downward pressure remained due to elevated domestic coking coal prices, notably prime grade, which have been narrowing margins, particularly for cokeries facing losses.

Cokeries may persist in suggesting price increases post-holiday season, yet the trajectory of China's coking coal market will closely align with the fluctuations in steel product prices in the immediate future.

Also, CSR 65% coke market, both FOB China and CFR India prices stabilised as international sellers and buyers anticipate a deceleration in offers, despite China accepting its fourth coke price hike since mid-April. With inventories dwindling at Chinese cokeries due to reduced production levels, market observers anticipate potential price hikes, although confidence in their acceptance remained uncertain. Some participants noted that coal materials are becoming increasingly cost-competitive compared to coke cargoes. They warned that if sellers persist in raising prices in line with coke hikes in China, buyers may transition to purchasing prime coal instead, underscoring the limitations of such price hikes.

Pig iron market

Indian pig iron prices rose by INR 1,850/t w-o-w and were assessed at INR 43,650/t Durgapur on 4 May 2024. Similarly, prices rose by INR 1850/t w-o-w in the Raipur market too and are currently assessed at INR 41,150/t DAP- Raipur.

Outlook

Indian industry suggests stability in met coke prices amidst global shifts. However, Indian steel producers, nearing completion of procurement ahead of the monsoon, exhibit cautious optimism, expecting possible price reductions before re-entry into the market next month.

4 May 2024, 13:39 IST

 

 

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