Metallurgical Coke (Metcoke) market has dropped by 3-5% from last month across India.
Shrunk Coke demand has pulled down its prices by INR 500-1,000/MT across India. West Coast Coke market has been hit a most as steel manufacturer has reduced their Coke purchase. Manufacturers are waiting for steel demand to revive, so they can increase their production.
West Coast based manufacturer’s official said, “Coke industry has been affected a lot as it is more dependent on steel industry.”
He further said that the lull demand and countries uncertain political conditions have led market to remain silent and we are expecting market to pickup after the Central elections.
Gujarat based manufactures are selling Metcoke (size 25-80 mm) at around INR 16,000/MT excluding taxes which is almost INR 800/MT less from the last month. However, another manufacturers are selling Metcoke (size 40-60 mm) to INR 18,000/MT excluding taxes which is INR 1,000/MT low from the last month.
“Our margins have contracted a lot and even some small manufacturers are selling Metcoke at slightly above the manufacturing cost”, official added.
SteelMint has noted that Metcoke (size 25-80 mm) prices dropped by INR 500/MT to INR 16,500/MT (Ex-vizag) and Metcoke (size 80-150 mm) prices remains at same level to around INR 20,500/MT in Kolkata.
Guwahati based market is also stable as SteelMint noted that manufacturers have good demand from Bhutan & Bangladesh but supply is facing a logistics issue. Guwahati market is facing the vehicle shortages for transportation which has increased the freight by INR 300-400/MT. But, the suppliers are bearing additional freight as they are in long term contract; however spot seller are quoting with the additional freight cost.
A Guwahati based trader said, “We have good demand of material and supplying accordingly but shortage of trucks are affecting our business.”
Metcoke (size 40-80 mm) is trading at INR 18,200/MT FOR basis excluding taxes in Ex-Guwahati.
Australian Coking Coal
International Coking Coal market has dropped almost by 4-5% during the January to February.
Hard Coking Coal (CSR 74%), which were trading at around USD 150-151/MT CFR India in early January, fell down by around USD 6-7/MT in February. Currently, the same cargo is trading at around USD 144-145/MT CFR India.
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