Simultaneous actions of high Coking Coal prices in Australia and supply tightness in China have lifted Met Coke export offers from China to remarkable heights.
On one side, Coking Coal prices in Australia have continued the rising trend due to robust demand conditions, and on the other side, supply has come under pressure in the Northern region of China; thus imparting upward pressure to the Met Coke offers.
The latest offer for the 64% CSR Met Coke is assessed higher than the week-ago offer by around USD 14/MT to around USD 360/MT FoB China. Likewise, the recent offer for the 62% CSR Met Coke also have gone up to around USD 341.50/MT FoB China, up by around USD 14/MT from that in the week last.
Source: CoalMint Research
For Indian buyers, these offers amount to: USD 360/MT and USD 356.50/MT respectively on CFR India basis.
In view of the higher global offers, Indian importers have lowered imports, and procured from the domestic markets.
As steel plants are running at high rates, and offers from foreign markets are high, strong demand for Met Coke is prevailing in India.
In response to the strong demand and higher offers, Indian Met Coke producers have hiked their ex-works prices by INR 500-1,000/MT.
Source: CoalMint Research
In India, the current prices of the Blast Furnace grade are: INR 22,200/MT (east coast), and INR 27,000/MT and 29,000/MT (west coast).
The prices are expected to rise further in the country as indicated by the demand and supply conditions.
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