Indian delivered metallurgical coke prices have resumed their rising trend amid tight availability and support from steadfast steel prices.
CoalMint currently assesses the spot price for the 64% CSR grade blast furnace met coke at $413/t CNF India, up by $5/t w-o-w.
The 62% CSR grade BF met coke is currently assessed at $368/t CNF India — up by $7/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. 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.
CoalMint assessed the latest price for domestic met coke with 12.5% ash in North China at CNY 2,220/t ($350.27/t), up CNY 70/t ($12.76/t) on the week with the second round of price hike proposed by coking plants having been accepted by some steel mills.
Recently the frequent environmental inspection in Shanxi areas together with the shutdown of obsolete capacity has 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.
Steel fundamentals underpin demand sustainability of 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.
Leave a Reply