India: Imported Met Coke Offers Expensive over Domestic Prices

Imported Met Coke offers to India from Chinese suppliers have gone up to USD 200-205/MT, CIF Indian ports i.e. INR 14,800-15,000/MT (landed).

It is assumed that offers have strengthened because of upcoming Spring festival in China from 18-24 Feb, 2015. To add, political tensions between Ukraine and Russia has resulted in low supply.

No deals have been concluded by traders at these levels yet as consumers aren’t accepting offers beyond USD 200/MT; actual businesses are happening at USD 195-197/MT, CIF India and USD 190-195/MT, CIF India for bulk quantities.

Indian merchant Met Coke manufacturers are offering the material (having .6%/.7% rejection S) in the price range of INR 13,000-13,500/MT ex-works. But, logistics constraints have pushed Eastern region based producers to offer Met Coke in the range of INR 12,800-13,200/MT ex-works.

Domestic market demand has slightly weakened because of production cut by few of the blast furnace operations. On the other side, congestion at Paradip/Haldia Ports, high port charges, congestion charges on demurrage and weak Rupee have pushed importers to wait for taking position.

R K Goyal, MD at Kalyani Steels said, “We are continually importing Met Coke at nearly USD 196/MT, CIF New Mangalore Port. As of now, it would be not easy to predict import price dynamics as market is awaiting for further clarity in demand and supply. For immediate delivery, purchasers are opting for domestic Met Coke over imported.”

Neelachal Ispat opens LAM Coke Prices at INR 14,700/MT ex-Cuttack

Neelachal Ispat is offering 2,200 MT LAM Coke at INR 14,700/MT ex-Cuttack. Buyers purchasing more than 2,200 MT (maximum quantity 6,600 MT) of the material are being offered at INR 14,500/MT ex-Cuttack.

Where would Indian Met Coke Prices head in Upcoming Month?

SAIL’s BSL (Bokaro Steel Plant) had floated 100,000 MT LAM Coke ( 25-80 mm) purchase tender through Railways. Suppliers shall offer a minimum of 70,000 MT initially; the entire quantity is to be supplied within three months, starting Jan’15.

Domestic offers may well shoot up by INR 200-300/MT in the upcoming month and dance to the tune of demand (high) and supply (low) mismatch on diversion of supply to SAIL until Mar’15. Hence, imported Met Coke offers shall be competitive then.