Chinese metallurgical coke export prices have gained slight traction over the past couple of days, relative to the price uptick in the domestic market segment as several steel mills have accepted the proposal to increase the price.
Traders anticipate market demand to emerge from Northeast Asia, particularly India, in the near term, although there is no immediate requirement heard from the Indian buyers at the moment due to the ongoing monsoon.
Further, multiple sources concurred that as the steel and coke manufacturing industries have come under increased pressure from falling margins in India, the overall buyer sentiment has remained soft but there are chances that demand from the Indian market will possibly return in the month of September.
However, even if the Indian buyers resume trading activities, there are chances that conclusion of these trades might be difficult owing to Chinese port restrictions.
Price Assessments for Week 32 (5 August – 11 August 2019)
Prices for 64% CSR and the 62% CSR grades are currently assessed at around USD 317/MT and USD 303/MT FOB China respectively, both prices being higher by USD 2/MT as compared to the rates that prevailed in the previous week 31 (29 July – 4 Aug’19).
Indian met coke import prices have also witnessed a slight increase and are currently hovering at around USD 333/MT for the 64% CSR grade, while the 62% CSR price is at around USD 319/MT on CNF India basis.
The tradable offer for Chinese 62%/60% coke was indicated at USD 296/MT FOB China with August 22-31 laycan in line with the market expectations on the price uptick proposed in Northern China last week.
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