Chinese Coke Offers to India may reduce further

Indian steelmakers/buyers are receiving Coke (CSR 65 & 30-90 mm) offers at USD 165/MT CFR India.

Whereas, domestic prices for 30-90 mm and CSR 64 Coke are around INR 13,500-600/MT ex works East. 0-10 mm (FC 77%) is being offered at INR 9,000/MT ex works South east and 5-15 mm at INR 12,600/MT ex works South east. 10-20 mm prices are at INR 12,800/MT ex works South east and 0-10 mm (FC 72%) at INR 7,900/MT ex works West.

Though, Chinese Coke is cheaper by nearly INR 1,000/MT, buying from domestic Cokeries is preferred as of now. Congestion at ports and shortage of rakes has delayed arrival of the imported material at plants.

A sharp increase in Coke imports has been noticed last month because buyers prefer to stock the material on grounds of logistical constraints and higher fines generation during monsoon. 0.3 MnT Met coke was imported last month in contrast to 0.1 MnT in Apr’15.

Import offers from China may reduce further as Coke demand is poor due to high price in comparison to product price and demand along with softening of Coking coal prices. Indian Rupee hits 20 month low; trades at below 64 against US Dollar and may correct further to 65, according to experts. Thus, imports will be costlier and buying interest is expected to remain strong in domestic market.

Australian Hard Coking Coal import offers to Indian steelmakers/traders are around USD 88-89/MT FOB Australia, for May end shipment. Freight charges for supramax vessel stands close to USD 14-15/MT with 17-18 days of arrival time. Premium HCC and semi-hard Coking coal offers are around USD 91-92/MT FOB Australia and USD 81-82/MT for May end shipment.