Seaborne metallurgical coke prices have been inching up over the past week with the Chinese end-users resuming normal market activity after their weeklong Lunar New Year holiday break.
However, the Indian domestic met coke manufacturers and suppliers are presently skeptical about the likelihood of a substantial downfall in demand with the approach of the financial year-end.
In China, domestic met coke prices have stabilized after the first round of increase was accepted. Also, there is sufficient inventory at steel mills as they had restocked after the Lunar New Year break.
Chinese met coke prices are expected to remain firm, especially because the Northern coke producing plants are heard to be considering a second round of uptick as cokeries’ inventory levels drop.
But with raw materials becoming costlier and steel profit margins growing thinner, certain Chinese mills are already claiming to incur hefty losses. This may in turn create resistance from coke buyers against further price increase.
Reportedly, with higher coke prices, the thermal rate for utilization of lower grade fines has made using certain discounted medium grade fines more economically feasible.
PRICE ASSESSMENTS
Chinese met coke export prices for the 64% CSR and the 62% CSR grades are currently assessed at around USD 358/MT and USD 343/MT FOB China respectively, both the prices have increased by USD 6/MT from the rates that prevailed in the last week (11-17 Feb’19).
Indian met coke import prices for the 64% CSR and the 62% CSR grades amount to USD 371/MT and USD 356/MT respectively on CNF India basis.
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