India: Met Coke import prices keep soaring on surging demand and tight supply

India’s metallurgical coke import prices continue to soar past multi-year highs on stronger demand despite limited availability of spot cargoes across different Asian origins.

CoalMint currently assesses the spot price for the 64% CSR grade Japanese blast furnace met coke at $417/t CNF India, up $12/t w-o-w.

The 62% CSR grade BF metcoke is currently assessed at $410/t CNF India — also up by $12/t w-o-w.

China’s the root cause for the price upsurge

Globally, met coke prices have constantly rallied on the back of persistent supply tightness arising from production cuts and replacement in China’s Shanxi, Hebei and Shandong provinces.

A severe squeeze on Chinese domestic coke supply has prompted an unprecedented rise in spot prices thereof. Higher domestic coking coal prices in China have pushed up the country’s met coke export prices to such high levels which are incompetent against other exporting nations.

The upward pressure on prices has come from a combination of huge growth in demand for coke in the Chinese steel industry and a shortage of coke export licenses which have led to a slump in Chinese exports.

The resultant squeeze in Chinese domestic coke supply caused end-users to opt for imported material, leading to a steady upward movement of global coke prices since early-August.

Simultaneously, premium low-volatile hard coking coal prices slumped 23% to $101.50/t FOB Australia at end December from the quarter before.

Industry experts predict the supply tightness to last until at least the next quarter, as supported levels of steel production are expected to continue boosting coke demand and prices.

India Coal Import Vessel Lineup

CoalMint’s latest vessel lineup data (as on 18 Jan’21) reveals that an aggregate shipment volume of 135,709 t of imported met coke has arrived at different Indian ports since 27 Jan’21 —

– 62,993 t at Haldia (West Bengal)

– 13,345 t at Paradip (Odisha)

– 59,371 t at Vizag (Andhra Pradesh)

These inbound met coke consignments have been sourced from different originating countries, viz. Colombia (97,737), Poland (17,972 t) and South Africa (20,000 t).

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By Aditya Sinha