Chinese Met coke prices have increased as domestic merchants were firm on their offers. Met coke prices uptick by USD 2-3/MT against the previous week.
Met coke market was dynamic this week as considerable number of trade query was heard in between China and India. Prices uptick again by USD 2-3/MT this week.
As per SteelMint’s evaluation, 64% CSR grade Met coke offers from China are costing at USD 121-122/MT, CFR India. Besides, 62% CSR offers are evaluated at USD 120-121/MT, CFR India. Alike 64% CSR grade, 62% CSR grade Met coke offers crept up by USD 2-3/MT in a week’s time for Panamax vessel.
However, prices were much higher for smaller quantity. An Indian importer told SteelMint, ”A Chinese supplier indicated that he will be offering Met coke at USD 115/MT, Nut coke at USD 100/MT and Coke Breeze at USD 83/MT, FoB China, for 40,000 MT vessel.”
Reason for uptick in prices
1. Lower coke production
After Spring celebration in China, most of the coke plants, are not running on their full capacity. Lower coke production has resulted in supply scarce, leading to price rise.
2. Lower coke accessibility
Few coke oven hasn’t yet begun production subsequent to spring celebration.
3. Losses to coke oven
Majority of the Chinese coke plants are running under losses, thus not willing to trade beneath a price level.
4. Spurt in domestic demand
The supply insufficiency of the material in domestic business sector has incited an increase in prices of imported material.
5. Increased steel and ferro alloys production in India
Growing steel and ferro alloy production has led to uptick of Met coke demand in India, ultimately, leading to price rise.
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