Indian met coke prices stood at INR 32,500/tonne (t) ex-Jajpur. Prices remained stable w-o-w. However, bids are at lower levels this week. As per discussion with market participants, a few low-volume deals are being concluded at lower prices.
Indian met coke prices for western India are assessed at around INR 33,000/t ex-Gandhidham. Prices are experiencing a downtrend.
Met coke prices in south India's Bellary also fell even as a deal for about 3,000 t of met coke was heard to have been concluded at INR 31,300/t delivered.
Indian met coke imports have been recorded at 0.22 mnt in March as against 0.33 mnt in February, as per data maintained with BigMint.
Coking coal prices
Australian premium hard coking coal prices fell by 3% w-o-w to $244.5/t. Metallurgical coal prices in Asia experienced a slight decline, attributed to high offers that were not accepted by market players. This trend emerged amid a notable disparity in the market sentiments.
The spot market saw an influx of cargoes, including those scheduled for early May loading that remained unallocated.
Imported coke prices
Chinese met coke prices were assessed at $336/t CNF India, for 65% CSR coke, up w-o-w.
Chinese metallurgical coke producers initiated the third round of price hike on 25 April, swiftly following the implementation of the second increase, bolstered by favourable market fundamentals.
A prominent steelmaker in Hebei province declared a rise in purchasing prices for Grade I wet-quenching coke by RMB 100/t to RMB 2,110/t and Grade I dry-quenching coke by RMB 110/t to RMB 2,395 /t, inclusive of VAT and effective from 26 April.
The increase in coking coal prices in the Chinese domestic market put pressure on some cokeries, resulting in losses and prompting them to implement the third coke price hike. With profitability still not showing substantial improvement, they are exercising caution in enhancing production, contributing to the ongoing supply shortage.
Steelmakers urgently need to replenish their stocks to keep up with growing production demand, leading them to agree to higher buying prices in order to compete amid limited availability of coke. This urgency facilitated the swift implementation of the third price hike.
Amid the continued imbalance between demand and supply, cokeries considered initiating a fourth price hike around the May Day holiday. However, objections were raised by steel producers, expressing concerns that such hikes would erode their margins, particularly with rising iron ore prices.
Pig iron market
Indian pig iron prices fell by INR 250/t w-o-w and were assessed at INR 41,700/t DAP Durgapur on 26 April. Prices rose by INR 200/t w-o-w in the Raipur market and are currently assessed at INR 41,100/t DAP Raipur.
Outlook
Indian met coke prices are expected to drop amid falling coking coal price this week. The merchant cokeries are yet to resume production in full capacity. Hence reduced met coke output may limit coke prices from falling further.
