Met Coke
Global traders & suppliers are offering 30-80 mm BF grade coke/LAM coke (CSR 64) to Indian buyers & steel producers at lower prices compared to previous month, in order to nullify the rise in cost of Indian imports.
Hike of 2.5% Met coke import duty in Budget 2015-16, increase in Rail freight charges by INR 250-300/MT (6.3%) and green energy cess at INR 200/MT now, has made Coke imports and domestic production expensive.
Indian buyers are receiving offers from Chinese suppliers at USD 163-165/MT FoB China/USD 178-180/MT CFR India, for delivery during May’15. Freight rate is USD 15/MT for standard size cargo of 30,000 MT. Importers continue to negotiate at USD 175/MT CFR India.
A couple of importers have recently concluded deals for Chinese Met coke at USD 185/MT CFR India, for Apr’15 end arrival. In the month under review, 70,700 MT of the material has been imported until now. At present, no vessels have been been recorded, either at anchorage or as ETA. India imported 144,000 MT Met coke in Feb’15, which is a 18% drop in contrast to Jan’15.
East India based BF Met coke producers are offering BF grade coke at INR 13,500-13,800/MT ex- works. Gujarat NRE Met coke prices weakened by INR 400/MT in Karnataka and are at INR 13,500/MT ex works. The company retains prices at INR 13,500/MT ex works for its Gujarat based cokery. RINL is offering Nut coke at INR 12,300/MT (basic price), with discounts of up to INR 1,000/MT on lifting of 4,000 MT.
Nut Coke
5-15 mm (FC 84% & moisture 10%) & 10-25 mm (FC 85% & moisture 8%) Nut coke offers to India are at USD 180-182/MT CFR India. Domestic suppliers are offering similar size material at INR 12,700-13,000/MT ex-Vizag, depending upon volumes & payment terms.
Coke Fines
Domestic suppliers based in the East are offering 0-6 mm/0-10 mm Coke fines (FC 78-82%) at INR 9,000/MT ex-works. While, those in the West have quoted INR 8,000/MT for 0-6 mm/0-10 mm (FC 74 %) Coke fines. SAIL’s Bokaro plant is offering 9,300 MT Coke fines at INR 7,900/MT ex-plant, by road transport.
Indian importers are being offered FC 83-84 % Coke fines at USD 138/MT CIF India, demand for which has risen because domestic availability is low.
The price disparity between the East and West is because East India is a stable market with volumes, having many sources and users. Whereas, the West (southwest) has limited sources and users. Hence, market here is a bit more volatile and prices are either too high or too low. For instance, in Q1 FY15, Coke fines were being sold at INR 9,000/MT ex-works in east and at the same time it was being sold at INR 11,000/MT in west.
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