Domestic met coke prices in India recorded a drop of INR 6,000/t w-o-w basis this week as the prices for 25-60mm blast furnace grade coke (64-65% CSR) are assessed at INR 54,000/t exy-Cuttack while in west the offers were heard at INR 55,000/t exy-Surat, with no deals being concluded.
This drop in prices has come as coking coal market remained quite stable during the start of the week while towards the end prices for premium coking coal of Australia-origin came down by $61/t and assessed at USD 460/t, FoB HayPoint basis.
ArcelorMittal Sourcing’s recent sale of Australia-origin PLV coal to a Singapore-based trader at USD 378/t for May laycan triggered the fall in coking coal prices. Taking advantage of this situation Indian buyers of met coke started bidding for lower rates.
“Coking coal prices have fallen and it may happen that prices may fall further, which is why we have adopted wait and watch mode and are quoting bids even lower than INR 54,000/t”, quoted a coke buyer based in east.
Sellers face hardship
On the sellers’ part, it has become a difficult situation as the coking coal being used for coke manufacturing has been procured at very high rates. Now with fall in bids, the actual conversion cost for them although continues to remain high, but they are compelled to lower offers amid very sluggish demand in the merchant market.
“Many coke buyers have their requirements covered for next few weeks as Chinese and Japanese coke that was booked in Feb’22 at lowered rates have arrived and also fresh offers for Chinese met coke are being offered at competitive rates, resulting in domestic Indian demand turning slow”, quoted a coke seller based in Kolkata.
Imported met coke offers in India
In a deal heard by CoalMint, Japanese (65% CSR) coke, about 25,000 tonne has been sold at $720/t CFR India (INR 55,400/t).
In one of a deal, a Chinese coke cargo (64% CSR) has been sold at $680/t, CFR India basis but this cannot be considered as a market rate as it was a high-sea sale while fresh Chinese cargoes are being offered at $710-720/t levels, CFR India basis, informed market participants.
Outlook
Although fallen towards the end of this week, met coke prices may gain some strength soon as imported coking coal prices for premium grade Australian origin coking coal has gone up today (6 May) is assessed at $516/t, FoB basis, giving sellers some bargaining power. However, any drastic rise seems unlikely due to cheaper Chinese coke offers.
Leave a Reply