India: Met Coke Market Highlights

BF Grade Coke/LAM Coke – Import Market

1. An Indian buyer finalizes 25,000 (+/-10%) Chinese BF grade Coke (CSR 64 & CRI 24) import deal at USD 190/MT CFR India. The vessel is expected to reach Indian port during mid-Apr’15, freight rate is estimated at USD 14-15/MT. Landed cost of the imported Coke is around INR 13,000-13,500/MT. While, procurement from domestic cokeries is costing INR 14,000-14,300/MT (landed)
2. East India based Blast Furnace operator received vessel AP Slano, carrying 36,300 MT. Met coke at Paradip port, last evening. The Chinese BF grade Met coke (25-90 mm, CSR 64 & moisture >5%) was booked at USD 187.75/MT CFR India in the 1st week of Jan’15
3. Also, a Ferro Alloy producer located in East, is anticipating vessel Oslo Trader containing 21,200 MT mid-sized Coke, to reach the same port on 12 Mar’15
4. Global traders are offering Chinese BF grade/LAM Coke (30-80 mm & CSR 64) at USD 190/MT CFR India (USD 175-176/MT FoB China), for mid-April delivery
5. In Apr’14-Feb’15, 3.1 MnT Met coke has been imported to India. Out of this, 58% has been imported from China

Domestic Market

1. Demand for domestic Coke is robust in contrast to imported Coke because of an average 10 to 15 days waiting time at major Coking Coal/Coke importing ports such as Vizag, Paradip and Haldia. While, at ports like Gangavaram and Vizag, it is taking  3 weeks to 1 month for railway indent to get matured. Thus, importers shall have to wait for about a month more to receive imported Coke
2. Rail freight for Coal has been hiked to 6.3% in Railway budget 2015-16. Thus, cost of making Coke shall increase up to by INR 100/MT and the industry may probably pass on the hike to consumers. Merchant Met coke manufacturers are anticipating rise in Met coke import duty, which is 2.5% as of now. While, Steel manufacturers expect import duty on Coal to be withdrawn
3. Cokeries in east India are offering BF grade Coke at INR 13,500-14,100/MT (ex-works). Prices in West Bengal are in the range of INR 13,800-14,000/MT (ex works)
4. Cokeries located in West India are offering Met coke in the price range of USD 14,000-14,500/MT, Nut coke at USD 13,000-13,500/MT and Coke breeze/fines at USD 11,000-11,500/MT (all prices are ex-works)

Nut Coke and Coke Fines Import Offers to India Rise

1.  5-15 mm Chinese Nut coke is being offered at USD 181-183/MT CIF India and below USD 180/MT CIF India for bulk quantity. 10-30 mm Nut coke prices are in the range of USD 187-188/MT CIF India
2. Traders are offering 5-15 mm domestic Nut coke (screened) at USD INR 13,000/MT (ex-works) and prices for 10-25 mm material are INR 13,250/MT (ex-works). BF size Coke offers are quoted at INR 13,500/MT (ex-works)
3.  0-10 mm & FC 82-83% Coke breeze/fines import offers are in the range of USD 135-137/MT CIF India