Met coke imports to India had increased by 50% last month in contrast to the total imports made in Dec’14.
In Jan’15, China had supplied the entire quantity i.e. 0.3 MnT (294,050 MT) at various Indian ports such as Haldia, Jaigarh, Kolkata, Vizag, Hazira, Paradip and Mangalore via 10 shipments. JSW Energy, Essar Steel, Atibir Industries, Rawmet Commodities, JSW Steel, Balasore Alloys and Visa Resources were the various receivers.
On the other hand in Dec’14, 0.2 MnT (196,200 MT) Met coke was imported from Australia and China together via 7 shipments at various Indian ports namely Haldia, Paradip, Hazira and Mangalore. Atibir Industries, Neo Metaliks, JSPL, Adani Enterprises, Rashmi Metaliks, Rawmet and Kalyani Steel had received the material.
Met coke import offers from China were around USD 195-196/MT, CFR India in Oct-Nov’14, which moved up to nearly USD 205/MT, CFR India in Dec’14. Prices started weakening since the beginning of this quarter i.e. USD 200/MT, CFR India in Jan’15. Currently, traders are receiving offers from Chinese Met coke (CSR 64) suppliers at USD 177/MT, FoB China, to be delivered in the beginning of Apr’15.
Met Coke Import to India in Jan’15
|
Receiver |
Qty (in MT) | Origin |
Port |
| Essar Steel | 93,500 | China | Hazira |
| JSW Energy | 52,800 | China | Jaigarh |
| JSW Steel | 49,500 | China | Mormugao |
| Atibir Industries | 23,750 | China | Haldia |
| 10,000 | China | Kolkata | |
| Various | 17,300 | China | Haldia |
| Bal/Visa Resources | 12,500 | China | Paradip |
| Rawmet Commodities | 12,200 | China | Haldia |
| N/A | 22,500 | N/A | Vizag |
| Total | 294,050 |
Source: SteelMint Research
On What grounds Met Coke Imports increased Significantly Last Month?
1. China’s steel production cut because of government clampdown on pollution, has slowed down Met Coke consumption in the domestic market and encouraged exports, which does not attract duty.
2. Cyclone Hudhud, which hit coastal areas of Southern and Eastern India in Oct’14, resulted in delayed arrival as well as unloading of Coking coal vessels booked then, at both Southern and Eastern Ports. Thus, cokeries had cut down Met coke production in the situation of low raw material availability.
3. In addition, for dispatching Coking coal from port to cokeries via trucks, road freight increased because of increasing supply. Thus, increase in cost of Met coke production had pushed up domestic prices.
4. Moreover, government prioritized thermal coal movement for power generation. And, shortfall of rakes caused slowdown in dispatching Coking coal at cokeries.
With no option left, end users/customers placed bookings for Chinese Met coke aggressively.
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