Indian delivered metallurgical coke prices were mostly unchanged this week as downstream demand remained firm on healthy steel margins.
CoalMint currently assesses the spot price for the 64% CSR grade blast furnace met coke at $418/t CNF India, unchanged on a week-to-week basis.
The 62% CSR grade BF met coke is currently assessed at $374/t CNF India — also unchanged w-o-w.
4th round of coke price uptick accepted; uptrend expected to continue in China
In the Chinese domestic metallurgical coke segment, major steelmakers accepted the fourth round of price uptick by CNY 100/t, bringing the total uptick to CNY 400/t. But trading activity was limited as buyers and sellers were away due to holidays. Market participants anticipate a positive demand outlook post-holiday owing to strong steel margins.
CoalMint assessed the latest price for domestic met coke with 12.5% ash in North China at CNY 2,400/t ($378.90/t), up CNY 180/t ($28.63/t) on the week with the second round of price hike proposed by coking plants having been accepted by some steel mills.
Coke plants, however, 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.
Furthermore, frequent environmental inspections conducted in Shanxi areas together with the shutdown of obsolete capacity have seen the operating rate of some coking companies go down. The downstream traders are active in taking position. It is expected that coke price in the short term may remain bullish.
Healthy steel market fundamentals lend support to demand for met coke in India
In the Indian domestic met coke market, the downstream steel demand recovery picked up pace on stronger construction activities. The strong domestic steel and coke prices may lend support to pre-monsoon 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.
Nevertheless, consumer demand has not fully picked up as market conditions have not yet stabilized. On the other hand, however, declining coke inventories and supply crunch will continue to support domestic coke prices in India, several market sources stated.
Also some end-users have slowed down their restocking activities this week because of the increasing numbers of Covid-19 cases.
Seaborne premium hard coking coal prices inch down on weak demand
Australian premium low-volatile (PLV) hard coking coal (HCC) FOB prices continued their descend on lower-priced deals amid ample availability in the Asian markets while China-based buyers waited on the sidelines owing to a lack of spot offers.
Presently, premium hard coking coal is cheaper on the back of the supply glut following China’s import ban from Australia, while semi soft and PCI prices are higher due to supply crunch in Australia.
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