India: Imported met coke prices strengthen amid supply risks, while domestic market stays stable

• Imported met coke strengthened on global supply tightness and higher supplier offers
  
  
• Domestic met coke remained stable amid balanced supply and demand
  
  

India's imported met coke market witnessed a noticeable recovery during the week ended 18 June 2026, supported by firming international coke prices and increasing raw material costs. BigMints assessment for Indonesian-origin BF-grade coke (65/63 CSR) increased by around $3/t week-on-week to approximately $318/t CFR India, reflecting stronger supplier offers and improved price sentiment in the international market.

The price movement was primarily driven by higher FOB quotations from Indonesian suppliers, with market participants indicating that Indonesian coke offers have increased to around $295/t FOB, up by nearly $2-3/t compared to the previous week. However, domestic met coke prices remained largely unchanged amid limited policy clarity, with buyers adopting a cautious approach.

Market participants also highlighted that near-term price volatility is expected as both Indonesian suppliers and the government continue to monitor potential policy developments in India.

Chinese coking coal supply disruptions strengthen coke market sentiment

China's coking coal market continued to remain firm w-o-w, supported by supply-side constraints arising from stricter safety regulations and temporary mine closures across key producing regions.

The restricted availability of raw coal has impacted coke production at several plants, tightening supply conditions in the domestic Chinese coke market. Despite stable coke prices, low inventories and strong blast furnace operations continued to support market firmness. The initiation of the eighth round of coke price hikes indicates continued strength in the Chinese coke market.

Domestic met coke market remains stable on comfortable availability

Unlike the imported market, Indias domestic BF-grade met coke market remained largely stable during the week, supported by sufficient availability, balanced demand-supply conditions, and comfortable inventory levels across major steel-producing regions.

Eastern India BF-grade coke prices declined by INR 200/t to INR 36,500/t ex-Jajpur, while western India prices remained steady at INR 34,000/t ex-Gandhidham due to localized demand support. Foundry-grade coke prices also remained unchanged at INR 36,400/t ex-Rajkot, supported by consistent consumption from foundry units and adequate supply availability.

The divergence between domestic and imported markets highlights that while global cost pressures are increasing, domestic producers continue to face limited scope for price revisions due to stable inventory positions.

Coking coal prices provide cost support despite recent correction

Australian Premium Hard Coking Coal (PHCC) prices declined marginally by $2/t w-o-w to $243/t FOB Australia. The recent easing in prices was attributed to improving geopolitical conditions, particularly the cooling of US-Iran tensions, which reduced supply risk concerns.

However, despite the correction, international coking coal prices remain elevated compared to earlier levels, continuing to provide cost support to coke producers globally.

Pig iron market reflects cautious downstream demand

While steel production levels remain healthy, the pig iron market showed signs of demand moderation due to cautious buying from downstream consumers. Steel-grade pig iron prices in Durgapur declined by INR 50/t w-o-w to INR 37,750/t ex-works.

In the recent SAIL Bhilai auction held on 17 June 2026, 7,000 tonnes of steel-grade pig iron were sold completely at the base price of INR 35,600/t ex-works. This reflected a correction of INR 1,450/t compared with the previous auction on 16 May, where 3,500 tonnes out of 10,500 tonnes offered were booked at INR 37,050/t ex-works. The lower pricing attracted buyers and enabled full quantity liquidation despite subdued downstream sentiment.

Outlook

The imported met coke market is expected to maintain a firm-to-volatile outlook in the near term, supported by higher international coke offers, elevated raw material costs, and tightening supply conditions in key exporting regions. Chinese coking coal disruptions and ongoing coke price hikes may continue to provide upward momentum to global coke prices.

However, domestic Indian met coke prices are likely to remain range-bound in the short term due to comfortable inventories and balanced supply-demand conditions. Market movement will largely depend on clarity around India's met coke policy, international supplier strategies, and the demand trend from the steel sector. A sustained recovery in steel demand could further strengthen coke prices, while subdued downstream buying may limit sharp increases.