India’s domestically produced metallurgical coke prices have softened moderately in the eastern region after having held mostly steady until last week.
However, domestic met coke prices in the western part of the country remain at elevated levels, as indications of rainfall-induced supply tightness from some cokeries pushed up offers, although buyers have yet to commit to deals.
The Indian spot demand for imported met coke has been increasing despite uncertainty over the impact that Covid-19 might have on shipments. Steel mills are keen to take their full contracted term volumes and some are heard to be seeking cargo advancements.
India’s domestic steel production has also risen back to pre-pandemic levels with optimum capacity utilization at all the major blast furnaces in the country.
Even as the overall steel demand is anticipated to decline, large-scale integrated steelmakers – with captive iron ore mines, downstream facilities and easier access to export markets – are increasing production.
A surge in demand from the automotive and white goods sectors and moderate activity in government infrastructure projects are driving the recovery in domestic demand for steel products in India.
Meanwhile, seaborne coking coal prices have increased sharply throughout the last month, thereby increasing cost of producing met coke, and thus encouraging cokeries to consider raising offer levels even further.
Latest offers for Australian premium hard coking coal are assessed at around $150.95/t on CNF India basis, with average spot prices having increased by almost 25% during last month.
India Coal Import Vessel Lineup
CoalMint’s latest vessel lineup data (as on 5 Oct’20) reveals that an aggregate shipment volume of 206,529 t of imported met coke has been received since 2 Oct’20 in India — 117,543 t at Hazira, 45,993 t at Haldia, 33000 t at Kolkata and 9,993 t at Vizag port.
Notably, all of these inbound met coke consignments are being sourced from different countries, other than China, viz. Poland (141,536 t), Japan (55000 t) and Colombia (9,993 t).
Price Assessments
Indian import prices of met coke are currently hovering at around $289.00/t and $285.00/t for the 64% CSR and the 62% CSR grades respectively on CNF India basis.
Indian domestic met coke prices of the 25-90 mm, blast furnace grade are currently assessed at around INR 23,500/t (east coast) and INR 24,000/t (west coast).
Chinese-origin met coke export prices are currently assessed at around $320.00/t and $299.00/t for the 64% CSR and the 62% CSR grades respectively on FOB North China basis.
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By Aditya Sinha
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