Chinese metallurgical coke export prices have moved slightly lower this week, after having regained momentum over the past few weeks on the back of price upticks in China’s domestic market.
Even as most steel mills have accepted the increased purchasing prices proposed by met coke producers, the Chinese domestic met coke market continues to remain under pressure from thinning steel margins, which in turn have impacted cokeries’ profit margins.
Elsewhere, volatile seaborne coke prices and slower regional steel demand have hit Atlantic metallurgical coke trade so far this year; while Colombia’s export met coke demand from some steel mills has fallen and shipments to Mexico are reduced, according to trading sources.
Chinese export met coke prices staying high – at above USD 300/mt FOB levels – have led to additional trade inquiries in Colombia from India, regardless of higher freight costs.
Meanwhile, a recent analysis by an Indian coal trader Iman Resources has revealed that the Indian steel industry is reducing its coking coal and met coke imports, because of using more pulverized coal injection material (PCI) directly in blast furnaces.
India imported 2.255 million metric tons of met coke in the first half of 2019 during January to July, which’s 28 percent lower as compared against the corresponding period of last year, according to the report.
Price Assessments for Week 35 (26 August – 30 August 2019)
Prices for 64% CSR and the 62% CSR grades are currently assessed at around USD 315/MT and USD 301/MT FOB China respectively, both prices being lower by USD 3/MT as compared to the rates that prevailed in the previous week 34 (19 Aug – 25 Aug’19).
Indian met coke import prices have also witnessed a slight decrease and are currently hovering at around USD 332/MT for the 64% CSR grade, while the 62% CSR price is at around USD 318/MT on CNF India basis.
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