Domestic met coke prices in India saw a further drop of INR 2,000-3,000/t this week as the BF grade (64% CSR) met coke is currently assessed at INR 47,000-48,000/t on the east coast, while prices for the same on the western side are at INR 49,000-50,000/t. On a m-o-m basis, the prices have fallen by INR 7,000-8,000/t in both the zones.
Demand from the Indian steel sector has turned quiet since the last two weeks post-the export duty imposition. In fact, prices of billets and flat steel in India’s domestic market have fallen by INR 2,500/t and INR 6,000/t respectively since the government’s decision to impose the customs duty.
While there were many cheaper coke offers from China till last week, Indian buyers turned less interested in booking imported material amid sluggish demand. The few offers heard for Chinese coke were in the range of $575-580/t, CFR India.
Imported coking coal prices fall, Indians look for Russian coal
Coking coal prices (Australian-origin) have also observed a fall of $55/t w-o-w and are currently assessed at $420/t FOB. The price plunge has come amid reduced buying interest from Asia and also from Europe.
While Chinese inquiries are less amid sufficient supplies from domestic and Russian markets, Japanese buyers are heard to have booked their long-term contracts in May and are not looking for spot purchases.
Indian buyers are heard to have moved to the sidelines amid subdued demand outlook in the near term. Along with this, they are heard to be exploring coking coal purchase options from Russia — which are lower by $200-250/t compared to Australian prices.
“A few key integrated steel players in India are in talks to bring in coal from Russian suppliers and a noticeable quantity will be seen coming into Indian in the next 2-3 months. While Russian coking coal is of good quality with low ash content, its sulphur content is a little high. However, given its cost advantage, Indian steel units are expected to blend and use it with Australian coal,” said an importer based in Mumbai.
Outlook
Indian met coke prices are expected to remain range-bound as demand from the steel sector is likely to remain sluggish in the near-term. Also, any further fall in coking coal prices may also weaken met coke prices in India.
Leave a Reply