Seaborne metallurgical coke prices have been edging down from their recent highs in the last few weeks, on limited spot trading amid limited availability of spot tonnages from Asian sellers.
CoalMint currently assesses the spot price for the 64% CSR grade blast furnace met coke at $410/t CNF India, down by 1% w-o-w.
The 62% CSR grade BF met coke is currently assessed at $374/t CNF India — down by almost 8% w-o-w.
Until last month, however, global met coke prices were underpinned by persistently strong demand in the Atlantic-region and high pricing in China.
In spite of the Chinese domestic met coke market remaining range bound amid thin activity, coke price did not lose support as downstream steel prices were relatively steady. Nevertheless, there were expectations among certain market participants that Chinese met coke prices may adjust downward.
But after the February 11-17 Chinese New Year holiday, some downward pressure emerged, particularly with coke prices in China being subjected to eight cuts amounting to CNY 800/t.
China domestic coke outlook bearish, prices expected to continue weakening—
In China, the eighth round of price cut by CNY 100/t materialized yesterday (March 30) in major coke producing areas in Hebei and Shandong region, bringing the total price cuts to CNY 800/t since the beginning of February.
But even though domestic coke prices continue to fall, there has been more export activity for China’s metallurgical coke recently amid the continuous falling domestic coke prices. New buying interest for Chinese metallurgical coke from Japan and Southeast Asia increased due to the high cost-efficiency of China’s coke.
Indian buyers stay clear of import market in anticipation of near-term price cuts—
In India, relative weakness in domestic steel prices in recent weeks has pushed some buyers to the sidelines. Many Indian buyers have 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 anticipate that domestic coke prices may also retreat in the near term.
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.
Presently, premium hard coking coal is cheaper due to ample supply following China’s import ban from Australia, while semi soft and PCI prices are higher due to the floods in eastern Australia.
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By Aditya Sinha
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