Met Coke global offers continue to rise under the influence of tighter availability, and stronger import demand.
It is due to the supply tightness in China, domestic producers there have raised their ex-work prices; and at the same time, the export offers also were raised. As the export offers are rising, buyers in the major import regions, such as India, have started importing aggressively in order to avoid the impacts of the offers going further up. The twin impact of the supply shortage and stronger demand is visible in the upsurge in the export offers.
The latest offers for the 64% CSR Met Coke is assessed at around USD 337.50/MT FoB China, up by around USD 10/MT over the week-ago offers. The current offers for the 62% CSR Met Coke also have gone up by around USD 10/MT to around USD 327.50/MT FoB China against the offers in the week last.
Source: CoalMint Research
For Indian buyers, these offers amount to: USD 355.5/MT and USD 345.50/MT respectively on CFR India basis. Moreover, the increase in the freight rates of Panamax vessels to around USD 18/MT along the China-India route also have compounded to the rising landed costs of the imports.
In India, buyers have started procuring in view of the rising international offers. In response, the domestic producers also have hiked their prices. Communicating with various sellers, it was learnt that two producers in the west coast have raised their ex-works prices by INR 750/MT and INR 1,000/MT respectively.
It is to be noted that the production scenario in the east coast is very lackluster; hence there was no significant price information in respect to the coast.
The current ex-works prices for the Blast Furnace grade in the country are at: INR 27,000, INR 28,250/MT and 32,000/MT (west coast).
Source: CoalMint Research
The prices in India are going to rise further.
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