Chinese met coke export prices have continued to strengthen this week, spurring concerns that international buyers may look to other origins, including Russia or Ukraine.
Furthermore, China’s domestic met coke prices are moving up because of bullish sentiments among coke plant buyers and traders.
Metallurgical coke prices in China have gained around RMB 300/MT this month amid tight supplies.
In China, market sources noted that the price upticks could be due to escalating concerns over the likelihood of further decreases in future met coke supply — such output drops might result from stricter environmental checks planned in September to combat pollution as part of the government’s winter policy.
However, with production cuts happening in China’s major steel hubs, this might have a dampening effect on demand for seaborne coking coal, which can rub off on met coke.
Also, the volatility in foreign exchange rates and stringent port restrictions have been constraining traders from buying seaborne cargoes.
PRICE ASSESSMENTS
The latest import offers for the 64% CSR met coke are assessed at around USD 365.50/MT FOB China, up by about USD 18.5/MT than the rates that prevailed in the week gone by.
Similarly, offers for the 62% CSR met coke has increased to around USD 356.50/MT FOB China.
For Indian buyers, these offers amount to USD 382.50/MT and USD 373.50/MT respectively on CNF India basis.
Source: CoalMint Research
Nevertheless, India’s domestically produced met coke prices have remained unchanged over the past week.
The current ex-works prices of the blast furnace grade are hovering around INR 26,000/MT (east coast) and between INR 27,000 and 28,000/MT (west coast).
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