- Domestic met coke production drops 11% m-o-m in Apr
- Proposed safeguard measure likely to weigh on imports
In April 2024, India witnessed a 27% m-o-m surge in met coke imports, to 0.28 million tonnes (mnt) compared to 0.22 mnt in March 2024. Volumes picked up on comparatively inexpensive import prices along with production cuts at domestic cokeries. Cokeries have been operating at reduced capacity since the past few months.
Indian met coke production dropped 11% m-o-m in April 2024. Captive production was recorded at 3.37 mnt and merchant producers contributed 0.47 mnt last month.
Country-wise met coke imports
India’s met coke imports from Indonesia picked up by 41% to 0.11 mnt in April 2024 as against 0.08 mnt in March 2024. Imports from China stood at 0.08 mnt in April 2024, rising significantly on comparatively better offers. Import prices were around INR 2,000/t cheaper compared to domestic.
Chinese import prices dropped 7% m-o-m to $314.5/t CNF India in April 2024 as against $339.8/t in March 2024.
Moreover, imports from Australia, stood at 0.02 mnt in the month under review. Imports from Poland stood at 0.07 mnt, up by 3% m-o-m in April 2024.
Govt proposes safeguard measures amid rising met coke imports
The Directorate General of Trade Remedies (DGTR) of India has issued recommendations related to the government advocating imposition of safeguard measures amid rising metallurgical coke imports to address escalating trade challenges.
Key recommendations:
1. DGTR has recommended that imports of the product under consideration are regulated and permitted not beyond the levels which have been derived based on an average of imports in the three representative years during the period of investigation, that is, 2019-20, 2020-21 and 2021-22 without considering the surge period, that is, 2022-23.
2.The quota has been adjusted and increased in line with the increase in demand and highest capacity utilisation of the domestic industry during the period prior to the surge period.
3. Imports would be permitted through the electronic data interchange (EDI) ports only to facilitate electronic/real-time monitoring of the allocated quota. The quota would be monitored on a quarterly basis. The total imports allowed in any quarter shall not exceed the total of that quarter and the next quarter. Any unutilised quota for a quarter shall be added to the next quarter.
The above recommendations are applicable for low-ash metallurgical coke, ie, coke having ash content below 18% and falling under the HS Code 2704, excluding coke fines/coke breeze and ultra-low phosphorous metallurgical coke with phosphorous content up to 0.030% with size of 30 mm with 5% size tolerance for use in ferro alloys manufacturing. The proposed measures, once accepted, will be in effect for one year.
Hazira Port received the highest imported cargo volumes of 0.10 mnt, followed by Paradip at 0.06 mnt. Haldia and Vizag ports received 0.04 mnt each. Kolkata Port received 0.03 mnt.
Outlook
Indian met coke imports continue to be at comparatively inexpensive levels, which may increase import inquiries.
Market participants indicated that the recommendations have been proposed, and the investigations have been concluded. However, the final decision is still pending. Amid the recommendations, imports may be controlled. However, the threat of a domestic price rise will persist ahead due to import restrictions.
Total inventories of metallurgical coke stockpiled at the 230 Chinese independent coking plants decreased for the sixth consecutive week over 3-9 May. Chinese steelmakers showed a steady demand for coke during the past week, a consequence of the uptick in steel production. Hence, Indian imports may be affected on rising Chinese demand.
