India: Metallurgical coke prices remain stable w-o-w amid government's quota extension

• Extension of QRs likely to support domestic coke producers
  
  
• Australian PHCC edges up, Chinese coke tags stable w-o-w
  
  

Indian metallurgical coke prices remained unchanged w-o-w across major trading hubs. According to BigMint's assessment on 2 July 2025, the 25-90 mm blast furnace (BF) grade coke price held steady at INR 28,000/tonne (t) ex-Jajpur. Similarly, in western India's Gandhidham market, prices remained at INR 29,000/t exw.

Market activity was largely subdued, as participants awaited the government's decision on extending import quotas. Domestic sentiment remains cautiously positive due to the expected reductions in coke imports, following regulatory developments.

Govt extends quantitative restrictions on imports

In a key regulatory update, the Government of India extended the existing quantitative restrictions (QRs) on the import of low-ash metallurgical (LAM) coke by an additional six months. The extension is effective from 1 July to 31 December 2025, as per a notification issued by the Directorate General of Foreign Trade (DGFT). This move is expected to support domestic coke producers by limiting import volumes, thereby bolstering the local market.

Steel sector auctions show slight price corrections

NMDC's steel plant in Nagarnar, Chhattisgarh, conducted an auction of 10,000 t of steel-grade pig iron on 1 July 2025. Out of this, 7,500 t were booked at an average price of INR 31,100/t (by road), marking a decrease of INR 400/t compared to the previous auction held on 10 June 2025. During that earlier auction, 5,200/t were booked at INR 31,500/t (by road). However, final approval from management is still pending.

Chinese metallurgical coke prices stable despite market challenges

Similar to the Indian market, China's metallurgical coke prices remained stable w-o-w. However, there was downward pressure, stemming from several factors, including tightened crude production due to stringent environmental inspections and a subdued port activity environment.

Additionally, although ongoing steel production provided some support for moderate restocking, overall margins deteriorated, resulting in reduced plant utilisation and lower coke inventories. Meanwhile, weakening steel prices and disappointing purchasing managers index (PMI) data further exacerbated market pressure. Consequently, near-term recovery in coke prices in China appears unlikely amid weak demand and seasonal headwinds.

Australian coking coal prices see marginal uptick

In the international coal market, Australian premium hard coking coal (PHCC) prices experienced a modest increase. PHCC prices rose by $9/t w-o-w to $183/t FOB, reflecting steady demand from steelmakers.

Market outlook

The Indian metallurgical coke market is expected to find support, supported by extended import restrictions and steady steel demand. While global pressures such as weak Chinese coke prices and volatile coal costs may pose risks, domestic policy support and reduced imports should help maintain prices. Cautious sentiment in pig iron auctions signals the need for close monitoring, but overall, the outlook remains moderately positive.