India: Met coke market stays firm w-o-w amid mixed sentiments

• Suppliers keep offers steady despite lacklustre demand
• Pig iron market shows some improvement but overall weak

The Indian metallurgical coke (met coke) market stayed largely stable w-o-w for the week ending 4 September amid mixed sentiments. In eastern India, BF-grade (25-90 mm) met coke was assessed at INR 29,000/tonne (t) ex-Jajpur, while in western India, prices held at INR 30,000/t exw-Gandhidham. Foundry-grade met coke stood at INR 35,600/t ex-Rajkot.

Supply-demand dynamics steady yet cautious

Market activity during the week was steady, though sentiments remained mixed. Australian premium hard coking coal prices inched down by $1/t w-o-w to $185/t, providing only marginal relief on input costs. As such, domestic met coke offers remained firm, reflecting the impact of elevated coking coal levels.

Despite this, demand was subdued, as Indian buyers showed concern over the prevailing rates. The resistance was more evident among pig iron producers, who faced weak demand. Rising met coke costs would further squeeze their margins, prompting a cautious stance.

Chinese met coke prices steady, market braces for decline

Chinese met coke prices stayed flat on 2 September, with the anticipated eighth round of hikes failing to emerge as weak steel demand, furnace maintenance, and falling rebar and hot-rolled coil (HRC) prices dampened buying interest. Mills in Ningxia and Hebei have already announced cuts of RMB 50-55/t in coke purchase prices, while rising inventories and easing coking coal costs further stoked expectations of price declines post the 3 September military parade.

Pig iron market shows mixed trend

India’s pig iron market showed some improvement in some regions. However, demand was still weak. SAIL’s Bokaro Steel Plant (BSL) held an auction for 3,000 t of steel-grade pig iron on 3 September. The total volume was booked at an average price of INR 32,300/t exw. Bids increased by around INR 600/t from the previous auction held on 30 August, in which 3,000 t were booked, out of the 6,000 t offered, at an average price of INR 31,730/t exw.

Outlook

India’s met coke market is likely to remain cautious in the near term, tracking global coking coal price trends and subdued domestic steel demand.