India’s metallurgical (met) coke import prices have resumed their upward journey over the past week amidst the recent squeeze in global supply, resulting from persistent high Chinese demand and record strong steel prices and margins in Europe.
However, Indian demand for seaborne met coke has remained largely subdued as most buyers refrained from making spot bookings amidst relatively softer domestic prices and ample material availability.
Moreover, the country’s domestic steel demand appears to have started to decline due to the onset of the monsoon season, coupled with ongoing restrictions associated with the coronavirus pandemic.
India’s met coke imports decline 40% m-o-m in May’21
India’s met coke imports decreased by a whopping 40.1% month-on-month to 0.19 million tonnes (mn t) in May’21, as per vessel lineup data compiled by CoalMint.
Latest data further reveals that an aggregate quantity of 101,307 tonnes (t) of Polish and Colombian met coke are expected to reach various Indian ports by 30 Jun’21, including 63,590 t at Hazira (Gujarat), 25,860 t at Paradip (Odisha) and 11,857 t at Vizag (Andhra Pradesh).
Besides, an 11,000 t cargo of met coke was exported by a major East Indian producer as of late last week.
China’s met coke imports surge amid strong demand and domestic undersupply
In the Chinese domestic met coke market, the near-term outlook for prices appeared to be stabilising. But the squeeze in domestic coking coal supply would have repercussions on the domestic met coke market as well.
The supply tightness observed in the domestic market, coupled with healthy demand from steelmakers, is likely to keep met coke prices strong in the near term.
Notably, Shanxi-based producers had proposed the first round of price uptick by CNY 120/t on 18 Jun’21, according to industry sources.
Furthermore, China’s customs data revealed that the country had exported 0.65 mn t of met coke in May’21, down 14.6% m-o-m. Meanwhile, China imported 0.11 mn t of met coke in May’21, up 131% m-o-m.
Price assessments
CoalMint assessed the blast furnace (BF) grade met coke, with 64% coke strength after reaction (CSR), at $428/t CNF India, up by $8/t on a week-on-week basis.
The 62% CSR BF grade met coke price increased by $9/t w-o-w to $387/t CNF India.
Indian domestic met coke prices, for the 25-90 millimeter-sized BF grade, are currently ranging between INR 27,000-29,000/t along the country’s east and west coasts respectively.
Outlook
India-bound seaborne met coke prices are likely to stay at elevated levels in view of the supply tightness resulting from China’s absence from the Asian export market.
Indian coke buyers are largely expected to stay out of the seaborne market as domestic prices are comparatively lower than the international prices, which have driven Indian coke exports lately.
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