Seaborne metallurgical coke prices have been rallying strongly in the last few months, lifted by firm buying interest alongside limited availability of spot tonnages from Asian sellers.
CoalMint currently assesses the spot price for the 64% CSR grade blast furnace met coke at $452/t CNF India, up $16/t w-o-w.
The 62% CSR grade BF met coke is currently assessed at $444/t CNF India — up by $15/t w-o-w.
Globally, the current upward momentum of met coke prices is underpinned by persistently strong demand in the Atlantic-region and high pricing in China. In spite of the Chinese domestic met coke market presently remaining range bound amid thin activity during Lunar New Year holidays, coke price might not lose support post-holiday as downstream steel prices are relatively steady.
Nevertheless, there are expectations among certain market participants that Chinese met coke prices may adjust downward, but the magnitude of decline would be dependent on steelmakers’ production and profit margins.
Notably, latest customs data released on 22 Jan’21 showed that China has resumed its role as a net exporter of met coke, having exported 394,901 t in December, up 34% on the month. Simultaneously, China imported 221,677 t of coke in December, down 28% m-o-m.
Meanwhile in India, relative weakness in domestic steel prices in recent weeks has pushed some buyers to the sidelines. Many Indian buyers have adopted a wait-and-see attitude in anticipation of near-term price cuts, citing that import prices were long due for a correction. Hence, sources anticipate that domestic coke prices may retreat in the near term.
India Coal Import Vessel Lineup—
CoalMint’s latest vessel lineup shipment data reveals that an aggregate shipment volume of 80,409 t of imported met coke has arrived at different Indian ports in this month —
– 65,000 t at Hazira (Gujarat)
– 15,409 t at Vizag (Andhra Pradesh)
Besides, 70,000 t of Russian met coke and 5,000 t of Colombian met coke are due for arrival this week at at Hazira and at Paradip (Odisha) respectively.
These inbound met coke consignments have been sourced from different originating countries, viz. Colombia (20,409), Poland (65,000 t) and Russia (70,000 t).
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By Aditya Sinha
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