Why Met Coke imports to India drop 21.5% Y-o-Y in FY15?

Met Coke imports to India drop 21.5% Y-o-Y in FY15 as 3.3 MnT Met coke was imported in comparison to 4.2 MnT in FY14.

We attribute 21.5% drop in Met Coke imports to the following:

Consistent fall in prices of Australian Coking coal narrowed down the gap between imported Coking coal and imported Coke prices. Thus, Coking coal imports were preferred for conversion to Coal, over low cost. Coking coal imports to India increased 15% Y-o-Y in FY15.

Buyers/domestic Coke producers inability to buy big tonnages due to financial crunch and volatile steel market, hit imports too. Also, prices of domestic Coke is at par with imports.

Moreover, fall in steel demand, pulled down Met coke requirement by blast furnaces and Ferro alloys manufacturers. Production cuts, backed by weakening Pig iron prices and Iron ore dearth, were evident.

In addition, congestion at ports since Q2 FY15 and shortfall of rakes for dispatching the material from port to plant, pushed buyers for domestic purchases.

China contributed 44% of total Met Coke Imports to India

Met coke exports from China were pushed to Indian market, following 40% export duty abolished in 2013. Therefore, in the past couple of years Coke exports from China starting increasing, eaten away Ukrainian and Russian Coke export market.

A downward trend in Met coke import prices are noted for the past few months, after China grabbed a big market share of exports to India.

159,100 MT Met Coke expected to arrive in 2 weeks

We are anticipating 159,100 MT Coke to arrive at various Indian ports i.e. Haldia, Paradip and Hazira, from China and Russia based suppliers, by the mid of this month.

Hazira based steel maker is to receive 60,000 MT Met coke from China (vessel Athanassios G.O). While, another steelmaker is to receive 20,500 MT Met coke at Haldia port, which has been shipped from Russia (vessel Karimu).

To add, Vessel Caribbean Id, carrying 22,000 MT is expected to reach Paradip port. Vessel Ingwar Selimer, carrying 15,000 MT Met coke from Russia, is at berth at Krishnapatnam port. Another vessel Atlantic Moon, carrying 49,500 MT Met Coke, is expected to arrive at Hazira port.

Met Coke Offers from International Suppliers

Prices in USD/MT CIF India 
*Prices in USD/MT FoB China

Domestic Market

Met coke market, governed by the steel market, has not seen any improvement in the past few weeks and prices remain almost unaltered.

Ex-works prices in INR/MT