India’s metallurgical (met) coke import prices have been mostly stable over the past week amidst the tightness in global supply, resulting from persistent high Chinese demand and record strong steel prices and margins in Europe.
Met coke markets are presently seeing higher prices for the blast furnace grade in the seaborne markets, with European Q3 price indications firm, partly because of the higher costs from merchant suppliers.
However, Indian demand for seaborne met coke has remained largely subdued as most buyers refrained from making spot bookings amidst relatively softer domestic prices and ample material availability.
Moreover, the country’s domestic steel demand appears to have started to decline due to the onset of the monsoon season, coupled with ongoing restrictions associated with the coronavirus pandemic.
Price assessments
CoalMint assessed the blast furnace (BF) grade met coke, with 64% coke strength after reaction (CSR), at $440.00/t CNF India, up by $4/t (0.9%) on a week-on-week basis.
The 62% CSR BF grade met coke price also increased by $4/t (1.0%) w-o-w to $399.00/t CNF India.
Indian domestic met coke prices for the 25-90 mm BF grade are currently ranging between INR 27,000-29,000/t along the country’s east and west coasts respectively.
Chinese domestic met coke prices firm
In China, domestic metallurgical coke prices are holding firm because steel margins are profitable and domestic demand is outstripping supply.
Coke plants’ utilisation rates are lower at present due to the recent environmental inspections. The resultant tight supply and firm demand from end-users would support coke prices in the near-run.
The latest price for domestic met coke with 12.5% ash in North China is assessed at CNY 2,870/t ($455.92/t), up CNY 70/t ($13.85/t) on the week.
Hence, most traders are unwilling to export coke because domestic prices are increasing frequently in the short term and some of them could not even secure cargoes from coke plants.
Seaborne prices surge on robust demand in ex-China markets
Export prices for Australian premium hard coking coal had been surging since May, as Asian customers were actively seeking prompt loading cargoes amidst a steel demand recovery. Furthermore, European contract buyers of US and Canadian coking coals were heard to be procuring Australian material instead.
Meanwhile, the major ex-Australian coking coal supplying nations – such as Russia, Canada and the United States – have solely been exporting to China as it is the best destination in terms of prices now.
Outlook
India-bound seaborne met coke prices are likely to stay at elevated levels in view of the supply tightness resulting from China’s absence from the Asian export market.
Indian coke buyers are largely expected to stay out of the seaborne market as domestic prices are comparatively lower than the international prices, which have driven Indian coke exports lately.
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