India’s metallurgical (met) coke import prices remained flat in the past week, as buyers continued to hold back on their seaborne purchases amidst ample availability of relatively low-priced domestic material.
Moreover, most end-users have slowed down their restocking activities since last two months because of the uncertainties following the resurgence of Covid-19 cases in India.
CoalMint assessed the blast furnace (BF) grade met coke with 64% coke strength after reaction (CSR) at $420.00/tonne (t) CNF India, unchanged from last week. The 62% CSR BF grade met coke price is also unchanged at $378.00/t CNF India.
Indian domestic met coke prices, for the 25-90 millimeter-sized BF grade, are currently ranging between INR 28,000/t-30,000/t along the country’s east and west coasts respectively.
India’s met coke imports decline 40% m-o-m in May’21
India’s met coke imports decreased by a whopping 40.1% month-on-month to 0.19 mn t in May’21, as per vessel lineup data compiled by CoalMint.
Latest data further reveals that an aggregate quantity of 101,307 t of Polish and Colombian met coke is expected to reach various Indian ports by 20 Jun’20, including 63,590 t at Hazira (Gujarat), 25,860 t at Paradip (Odisha) and 11,857 t at Vizag (Andhra Pradesh).
Besides, an 11,000 t cargo of met coke was exported by a major East Indian producer as of late last week.
Seaborne coking coal prices surge on robust demand in ex-China markets
Export prices for Australian premium hard coking coal had been surging since May, as Asian customers were actively seeking prompt loading cargoes amidst a steel demand recovery. Furthermore, European contract buyers of US and Canadian coking coals were heard to be procuring Australian material instead.
Meanwhile, the major ex-Australian coking coal supplying nations – such as Russia, Canada and the United States – have solely been exporting to China as it is the best destination in terms of prices now.
Simultaneously, however, market sentiment in China has turned bearish following the steel price slump, prompted by the firm intention of the Chinese government to prevent further price rise.
Nevertheless, Chinese domestic metallurgical coke prices held steady on the back of sustained demand and persistent undersupply.
Outlook
India-bound seaborne met coke prices are likely to stay at elevated levels in view of the supply tightness resulting from China’s absence from the Asian export market.
Indian coke buyers are largely expected to stay out of the seaborne market as domestic prices are comparatively lower than the international prices, which have driven Indian coke exports lately.
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