The Indian market for seaborne metallurgical coke has been lately observing a relatively moderate buying trend amidst a slightly higher offering level.
CoalMint currently assesses the spot price for the 64% CSR grade blast furnace met coke at $418.00/t CNF India, unchanged on a week-on-week (w-o-w) basis.
The 62% CSR grade BF met coke is currently assessed at $376.00/t CNF India – up by $2/tonne w-o-w.
Indian met coke price outlook bearish amid market uncertainty
Indian domestic prices for blast furnace grade metallurgical coke have been edging down on subdued trading activities due to aggravated supply concerns amid rising Covid cases.
The ongoing second wave of the pandemic has still not affected the country’s blast furnace steel production even as most integrated steel mills are providing liquid oxygen for medical use to meet demand from hospitals. However, secondary steel mills are heard to be reducing output citing acute oxygen shortage.
It is anticipated that steel markets in India will withstand the impact of the surge in Covid-19 cases as industry participants largely believe essential businesses would likely be exempted from potential lockdown restrictions, unlike last year when a nationwide lockdown was imposed.
Meanwhile, Chinese coke prices continued to surge amid high steel margins and increasing coking coal prices. In the domestic metallurgical coke segment, steel mills accepted the sixth round of price hike, bringing the total uptick to CNY 600/t.
CoalMint assessed the latest price for domestic coke with 12.5% ash in North China at CNY 2,700/t ($418.33/t), up CNY 200/t ($30.99/t) on the week.
Seaborne premium hard coking coal prices weaken on demand softness
Australian premium low-volatile (PLV) hard coking coal (HCC) FOB prices continued their descent on lower-priced deals amid ample availability in the Asian markets while China-based buyers waited on the sidelines owing to lack of spot availability.
Presently, premium hard coking coal is cheaper on the back of the supply glut following China’s import ban from Australia, while semi soft and PCI prices are higher due to supply crunch in Australia.
Outlook
Supply tightness in high-quality, low-sulphur hard coking coal in both the domestic and import markets should continue to support met coke prices in May.
Amidst escalating uncertainties on seaborne and inland transportation as Covid-19 cases continue to surge, coke producers may become cautious about procuring imported coking coal.
Even as seaborne coking coal demand from India has been steady so far in April despite the resurgence of Covid-19 infections, market sentiment could weaken if contamination rates increase further.
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