- Imported met coke prices fell amid weak demand and competitive offers
- Soft steel demand and global coke weakness capped price recovery
India’s imported metallurgical coke market remained largely inactive during the assessment week ended 30 July, despite increasingly competitive overseas offers.
BigMint assessed Indonesian-origin BF-grade met coke (65/63 CSR) at $308/t CFR India, down $4/t w-o-w, as weak spot activity, subdued steel demand and policy uncertainty continued to weigh on procurement. Market participants indicated offers around $280-290/t FOB, but buyers remained cautious, with market response still awaited and overall demand muted.
Definitive ADD brings policy clarity, but import economics remain relevant
The Indian government has notified a five-year definitive anti-dumping duty on low-ash met coke imports from Australia, China, Colombia, Indonesia, Japan and Russia, following DGTR’s finding of material injury to the domestic industry. However, the lower-than-provisional duty levels are unlikely to fully eliminate imports, as overseas material continues to retain cost and quality advantages.
Market participants also noted that reduced duty protection could intensify pressure on domestic producers, while potentially raising raw-material costs for steelmakers, given met coke’s significant share in steelmaking input costs.
Domestic coke market stable amid weak demand and lower cost support
India’s domestic met coke market remained broadly stable, with subdued steel demand and limited spot transactions keeping buyers and sellers cautious. BF-grade coke prices were unchanged in eastern India at INR 35,150/t ex-Jajpur, while western India prices declined by INR 500/t to INR 33,500/t ex-Gandhidham; foundry-grade coke remained relatively firm at around INR 36,400/t ex-Rajkot.
Meanwhile, Australian PHCC prices declined by $3/t w-o-w to $219/t FOB, easing input costs for coke producers, although weaker downstream demand and cautious inventory management have so far prevented this cost relief from translating into lower domestic coke prices.
China adds to bearish global coke sentiment
China’s coke market remained under pressure as the second round of coke price cuts of RMB 50-55/t ($ 7-8/t) was fully implemented. Weakening steel prices, compressed mill margins, lower pig iron output and reduced raw-material procurement have eased the coke supply-demand balance, reinforcing a subdued near-term outlook. Meanwhile, coking coal prices remained broadly stable, supported by mine-safety restrictions and tight availability of high-quality, low-sulfur grades.
Pig iron shows selective buying amid cautious steel demand
Pig iron prices in Durgapur increased by around INR 600/t w-o-w to INR 38,400/t ex-works, supported by selective buying despite seasonal monsoon-related weakness. However, sentiment remained cautious, with SAIL-Rourkela’s latest steel-grade pig iron auction witnessing 6,100 t bookings against 10,500 t offered at a base price of INR 37,250/t ex-works. The average realisation declined by INR 800/t from the previous auction, indicating softer bidding sentiment despite supply-side constraints.
Outlook
The near-term outlook for India’s met coke market remains weak to stable. Competitive imported offers and lower coking coal prices are likely to cap domestic price upside, while subdued steel demand, cautious procurement and softer Chinese coke fundamentals will continue to weigh on sentiment. However, the definitive ADD provides greater policy visibility and may offer some support to domestic producers. Import demand is likely to remain selective and price-sensitive, with meaningful price recovery dependent on an improvement in steel demand and producer margins.
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