- Coke tags in eastern India fall INR 1,100/t since 24th Apr
- Muted finished steel demand weighs on pig iron prices
Domestic met coke prices dropped sharply w-o-w, extending the downtrend from the previous week. As per BigMint’s assessment, 25-90 mm blast furnace (BF) grade coke prices stood at INR 33,000/tonne (t) exw-Jajpur, down by INR 650/t w-o-w, while prices in Gandhidham were recorded at INR 31,000/t exw, plunging by INR 1,200/t. In the last two weeks, prices in eastern India fell by around INR 1,100/t against INR 34,100/t exw on 24 April.
Pig iron prices fall further w-o-w on muted demand
Steel-grade pig iron prices in Durgapur, India, decreased by INR 200/t w-o-w to INR 32,900/t exw. Prices have largely exhibited a declining trajectory since early April due to weak demand. Notably, in the last two weeks, prices fell around INR 1,700-1,800/t against INR 34,650/t exw on 24 April.
Despite this, the National Mineral Development Corporation (NMDC) has been actively organising domestic auctions. However, these auctions have faced difficulty in attracting sufficient buyers, reflecting the broader weakness in market conditions.
Additionally, in the latest auction from NMDC’s steel plant in Nagarnar, Chhattisgarh, on 5 May, bids declined by INR 1,200/t from those in the previous auction on 23 April. At the auction on 5 May, 10,000 t of steel-grade pig iron (for road transport) were offered, with 1,500 t booked at the base price of INR 33,000/t. At the previous auction on 23 April, of the 15,000 t on offer, 2,500 t were booked at the base price of INR 34,200/t (for road transport).
Parallelly, demand for finished steel remained subdued, further exacerbating the challenges for pig iron producers. Additionally, falling met coke prices weighed on pig iron and finished steel tags.
Australian coking coal prices experience further uptick
Australian premium hard coking coal (PHCC) prices continued to increase this week. Prices stood at $192/t FOB Australia, up by $2/t w-o-w. This rise could be attributed to tightening supply conditions and stable demand, which helped support met coke prices despite broader market challenges.
China’s coke prices remain stable; mills limit purchases as inventories rise
China’s metallurgical coke market was stable w-o-w, as producers withdrew their proposal for a second straight round of price hikes. Steelmakers’ demand was offset by cooling raw material prices and weak downstream activity. Mills held high coke inventories, which led to weak demand despite high molten iron output. Despite recent policy measures to stimulate the economy, the conclusion of new coke contracts has slowed down, and some pre-sales have extended into June.
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