Varied demand patterns were observed in the Met coke market in India. While, demand in the majority of pockets has remained low, demand in a few regions in eastern India was stronger.
MARKET TREND
The low demand has arisen from the majority of user-industries having already stocked the material ahead of the rainy season.
Despite positive sentiments in China, import offers of Met Coke continued to exhibit a falling trend, and were assessed slightly lower than that in the last week.
The latest import offers of the 64% CSR Met coke was assessed marginally lower at USD 157/MT FoB China; and that of the 62% CSR Met coke was assessed at USD 155/MT FoB China, which is slightly lesser than the last assessment. On CFR India basis, these import offers translate into: USD 166/MT and USD 164/MT respectively.
Prevalence of low demand, and low import offers have restricted Indian producers from revising their ex-works prices. However, relatively higher demand in the eastern part of the country has led a producer in the east coast to hike its ex-work price by INR 150/MT for the Blast Furnace grade of Met coke.
Thus, the prevailing ex-works prices of the Blast Furnace grade of Met coke are at: INR 14,000-14,650/MT (east coast) and INR 15,000-15,500/MT (west coast).
In the meantime, bullish sentiments have prevailed in China in respect to Met coke. In the Dalian Commodity Exchange, Met coke futures have risen by 23% to Yuan 937.50/MT on bullish sentiments arising out of positive prospects for the Chinese steel sector.
The Chinese government is in the process of balancing supply with demand in that country’s steel industry to derive economic value.
IMPORTS
Low import offers have prompted many buyers in India to import the material. A few users, contacted by SteelMint, revealed that they preferred importing the material as the prevailing import offers were attractive.
During the 1-20 Jun’16 period, 206.3 TMT of Met coke was imported into the country, SteelMint Research shows.
Substantial imports are expected to enter into the country in the coming days as import offers are low.
MARKET OUTLOOK
The market outlook is uncertain, being created by low import offers, which will restrict any major upward price revision by domestic producers. Many market participants believe that domestic prices are going to remain at the current rates in the near future.
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