Speculations about imposition of MIP on steel products in India have started to affect market sentiments. Domestic Met coke manufacturers predict no price correction in coming weeks.
MIP, if imposed on steel products, is likely to surge imported raw material prices and in turn will benefit to domestic Met coke manufacturers. Talks about the same have floated positive sentiments in domestic market.
[su_pullquote align=”right”]An Indian trader told to SteelMint, “If MIP imposed on steel in coming 10-15 days, it will lead to increase in imported coking coal prices, resulting into restricted import. This will lead to a spurt in demand of indigenous Met coke, causing its prices to rise.”[/su_pullquote]
Currently, domestic Met coke offers are assessed at INR 12,000-12,500/MT for 25-80 mm BF grade Met coke; have remained stable from couple of weeks.
[su_quote]An Indian manufacturer told to steelMint, ” Domestic Met coke producers have been already bearing losses and they will prefer to close their coke instead of further reducing their prices. Presently, market is volatile but it is predicted that either prices will be stable or will rise marginally in coming weeks.”[/su_quote]
Global Met coke market
Chinese Met coke import offers were stable this week; the major reason being a good number of trade offers indicating improved demand.
SteelMint assessed that 64% CSR Met coke offers from China are hovering in the range of USD 124-125/MT, CFR India, alike preceding week, witnessing no change this week.
[su_quote]An Indian importer told to SteelMint, “There are fair chances of uptick in Chinese Met coke prices due to couple of reason. The main being the winter season that has led to limited supply.” [/su_quote]
Another market participant predicted stability or marginal rise in prices as some of the major players have stopped production. This in turn will lead to limited supply, causing increase in demand. He further stated that there is least chance of price corrections in near term as Chinese coke manufacturers have refused to lower their prices and bear losses.
Clubbing all the above, bullish sentiments can be predicted in both global and domestic Met coke markets in approaching future.
SteelMint assessed that India has already imported .3 MnT of Met coke in Dec’15.
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