- Coke prices surge on tight supply and higher raw material and import replacement costs
- India’s merchant coke production drops 30% y-o-y to around 2.5 mnt during Jan-Aug
India’s met coke market continued its sharp uptrend in the week ended 10 September, supported by tightening availability, elevated imported coke replacement costs and a sharp rise in coking coal prices.
BF-grade met coke prices in eastern India increased by INR 1,500/t w-o-w to INR 41,500/t ex-Jajpur, while western India recorded a INR 3,000/t increase to INR 38,000/t ex-Gandhidham, both marking nearly marking a nearly 3.5-year high. Foundry-grade coke prices also rose by INR 1,000/t to INR 39,000/t ex-Rajkot, reaching a nearly 2.5-year high.
Limited spot availability and low producer inventories strengthened buyers’ urgency to secure material, with market participants indicating that the market remained extremely tight and purchases increasingly being made to cover immediate requirements rather than for inventory building.
Also, as per data maintained by BigMint, India’s merchant met coke production declined 30% y-o-y to around 2.5 mnt during January-August 2026, from 3.59 mnt in the corresponding period last year, primarily due to tighter raw material availability, elevated coking coal costs and subdued operating margins, which led to production curtailments among independent coke producers. The decline has further tightened domestic met coke availability, adding upward pressure on prices.
Imported met coke: Indonesian supply constraints amplify cost pressure
India’s imported met coke market strengthened further, with Indonesian BF-grade met coke (65/63 CSR) rising by $4/t w-o-w to around $361/t CFR India. The increase was primarily driven by higher Indonesian FOB offers, elevated freight and insurance costs, limited vessel availability, and strong Chinese procurement that has absorbed a significant share of Indonesian supply.
A source indicated that “Indonesian suppliers are largely booked through November, restricting prompt availability for Indian buyers. Although a 20,000-t transaction was reported at $335/t FOB Indonesia, current replacement costs remain substantially higher, reflecting persistent supply tightness and elevated logistics costs.”
China coke market: Supply constraints sustain bullish sentiment
China’s coking coal and met coke markets remained firm, supported by tight raw-material availability and a gradual recovery in mine output. Domestic met coke prices increased by Yuan 100-110/t ($15-16/t) following the implementation of the fifth round of price hikes, providing some relief to coke producers facing elevated input costs.
Low coke inventories and continued steel-sector demand are supporting the market; however, maintenance-related steel production cuts and weaker mill margins could constrain further price increases. Coking coal prices are therefore expected to remain elevated, with the market retaining a firm bias in the near term.
Global coking coal: Higher costs add support to coke prices
Australian premium hard coking coal FOB prices increased by $7/t w-o-w to around $283/t, further raising the input cost base for coke producers. Sustained strength in seaborne coking coal, combined with tight Indonesian met coke availability, is likely to keep imported coke replacement costs high and provide continued support to domestic met coke prices.
Pig iron: Strong exports reinforce raw material demand
India’s pig iron exports surged 214% y-o-y to around 1.1 mnt during Jan-Aug 2026, compared with 0.35 mnt in the corresponding period last year, while August exports reached a record 337,899 t, according to BigMint data. Strong export realisations in key markets such as the US and Türkiye have encouraged producers to prioritise export sales, while pig iron producers operating under the Advance Authorisation Scheme continue to show interest in imported met coke.
Meanwhile, Durgapur steel-grade pig iron prices increased by INR 450/t w-o-w to INR 40,450/t ex-works, reflecting higher met coke and other ferrous raw-material costs.
Outlook
India’s met coke market is expected to remain firm with a positive bias in the near term, supported by tight domestic availability, elevated coking coal costs, high Indonesian replacement prices and limited prompt import availability.
Continued Chinese buying and logistical disruptions in Indonesia could keep imported coke prices elevated, thereby raising the cost floor for domestic producers.
However, the pace of further price gains may moderate if steel margins weaken, pig iron demand softens or downstream buyers increasingly resist higher coke prices. Overall, the market is likely to remain structurally tight, with prices holding at elevated levels and any improvement in domestic supply or easing in global raw material costs emerging as the key downside triggers.
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