India: Met coke prices largely stable amid sluggish demand, China offers decline

Indian met coke prices remained largely stable this week. The price for BF grade (25-50mm, 64% CSR) met coke is heard at INR 53,500/t exy-Cuttack while in the west, the same was assessed at INR 55,000/t exy-Surat.

Indian met coke demand remained mute this week as buyers were heard to be bidding lower at INR 49,000-50,000/t, while sellers found it difficult to lower offers amid elevated coking coal prices. In one of the deals heard by CoalMint, 5,000 t (64% CSR) of coke has been sold at INR 53,500/t in the eastern part of India.

Buyers look for smaller parcels

Merchants are looking for small parcels amid volatility in coking coal prices. Australia-origin coking coal prices for premium grade kept fluctuating this week, first falling by $25/t then climbing again by $20/t. Currently, prices are assessed at $515/t, FoB Haypoint basis.

Meanwhile, there is no fundamental change in the global coking coal demand-supply dynamics after ArcelorMittal’s (sourcing) unawarded tender for 75,000 t PLV (premium low volatile) Australian-origin coal that received highest bid of $467/t, FoB, shook the market confidence and buyers moved to the sidelines.

End-user demand turns slow

Indian steel demand from end-user segment has turned sluggish amid escalated costs. While flat steel demand from the export market is silent, rebar demand from domestic construction sector is also slow as need-based purchases are taking place, and projects are being deferred by 3-4 months.

Domestic pig iron prices (steel grade) in India have fallen by INR 2,200/t w-o-w basis and are currently assessed at INR 54,500/t exw-Durgapur.

Imported Chinese coke offers down by $50/t

Chinese coke (64%CSR) offers have come down by $50/t in the past ten days and are currently heard at $670/t CFR India. However, no trade deals were heard to be concluded due to slugglish demand. Chinese coke offers have fallen amid lower demand and procurement of cheaper coking coal from Russia.

Also, no export deals were heard from India this week amid increased competition from China that is supplying to Europe at quite cheaper rates.

Outlook

In the current scenario, met coke prices are expected to see some downward correction with anticipated fall in coking coal prices and competitive Chinese coke offers.