Indian delivered metallurgical coke prices have resumed their downward trend this week as trading activities were relatively thin despite tight availability and support from rising steel prices.
CoalMint currently assesses the spot price for the 64% CSR grade blast furnace met coke at $406/t CNF India, down by $3/t w-o-w.
The 62% CSR grade BF met coke is currently assessed at $358/t CNF India — down by 16 3/t w-o-w.
Uncertain demand outlook amid extended production cuts in China
In the Chinese domestic metallurgical coke segment, an impasse remained between buyers and sellers as both sides were resistant to price adjustment proposals.
Earlier this week, producers in Shanxi and Shandong proposed an initial price uptick of CNY 100/t, after eight rounds of price cuts totaling CNY 800/t. However, major steel mills in Hebei and Shandong are yet to respond to the price adjustment proposal.
Coke plants cited higher cost of production following the uptick in domestic coking coal spot prices and poor margins as factors that could support coke prices in China.
Indian buyers stay clear of import market in anticipation of near-term price cuts
In the Indian domestic met coke market, demand has not fully picked up as market conditions have not stabilized. However, the downstream steel demand recovery picked up pace on stronger construction activities. The strong domestic steel and coke prices may lend support to premonsoon restocking, as the monsoon season approaches in June-July.
Relative weakness in domestic steel prices in earlier months had pushed some buyers to the sidelines. Many Indian buyers adopted a wait-and-see attitude in anticipation of near-term price cuts, citing that import prices were long due for a correction. Hence, some sources anticipated that domestic coke prices would retreat in the near term.
Presently, the Indian market is very soft as not much demand from steel mills has emerged. However, declining coke inventories and supply crunch will continue to support domestic coke prices in India, several market sources stated.
Seaborne premium hard coking coal prices edge lower on weak demand
Australian premium low-volatile (PLV) hard coking coal (HCC) FOB prices continued their downtrend on lower-priced deals amid ample availability in the ex-China market while China-based buyers waited on the sidelines due to a lack of spot offers.
Latest prices for the Premium HCC and the 64 Mid Vol HCC grades are assessed at around $110.00/t (-2.7% w-o-w) and $105.50/t (-2.3% w-o-w) FOB Hay Point, Australia.
For Indian buyers, these prices amount to $129.50/t (-2.8% w-o-w) and $125.00/t (-2.5% w-o-w) respectively on CNF India basis.
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