Imported Met coke (62% CSR) offers show stability as demand in global market is low; devaluating INR has slowed demand among Indian buyers.
Indian met coke importers are hesitant in making fresh purchases owing to currency devaluation. It may be noted that Indian rupee has fallen to a 2-year low of 66.4/USD. Indian Met coke importers are waiting for market to become favorable for imports.
Further, falling export of ferro alloy in global market has compelled Indian manufacturers to curtail their production volumes, ultimately causing disinterest in Met coke buying. Prevalence of inactive demand in the domestic market added to import offers remaining stable. Currently, Chinese Met coke is assessed at USD 129-130/MT FoB Tianjin Port whereas, offers are at USD 142-143/MT CFR East and West coasts of India. Chinese coke breeze is being offered at USD 95/MT FoB. Vessel freight for 45,000 MT cargos from China is assessed at USD 12-13/MT.
“Indian buyers are preferring imported Met coke (64-65%) CSR over 62% CSR owing to a nominal price difference of 2-3/MT between the two”, says a market participant. Whereas, “Indian buyers are more attracted towards the cheaper imported BF grade than domestic grades”, claims another.
Domestic
Demand for indigenous Met coke has also weakened considerably as Indian steel manufacturers choose procuring the material from overseas, prompted by the falling prices in international markets. Domestic Met coke prices have remained stable, at INR 12,000-12,500/MT ex-work, due to the prevailing low demand. The prices are not expected to undergo any notable fluctuation at least in the near-term.
Chinese Met coke is being offered at USD 142/MT CFR India, costing Indian buyers around INR 10,400-10,500/MT, inclusive of all duties and clearances. Although Indian steelmakers are at the receiving end but the same has proved to be a reason for despair for local Met coke manufacturers. Centre had already imposed an import duty of 5% instead of 2.5% earlier, on coke imports in last budget. Indian coke manufacturers are currently looking for anti-dumping duty on Chinese imported coke, hoping the same could help in stabilizing the domestic market.
Met Coke Imports to India
According to SteelMint’s assessment, about 1.4 MnT of Met coke has already been imported into India till Aug’15 in the current fiscal. During FY15, Met coke import to the country was assessed at 3.3 MnT against 4.2 Mnt in FY14.
Grade- Met Coke
Prices- USD/MT CFR India (Average Monthly Prices)
Qty in MnT
Source- SteelMint Research
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