- Prices steady; margins strained by coal costs
- Demand muted; participants remain watchful
The Indian BF-grade metallurgical coke (met coke) market largely remains unchanged during the week ending 24 Dec’25, with prices in both eastern and western regions holding steady week-on-week (w-o-w). Market sentiment stayed cautious as rising raw material costs offset by weak downstream demand limited any meaningful price movement.
BF-grade met coke (25-90 mm) was assessed at INR 32,000/t ex-Jajpur, unchanged w-o-w. Meanwhile, in western India, BF-grade met coke prices were assessed at INR 29,800/t ex-Gandhidham, also unchanged w-o-w. In contrast, foundry-grade met coke prices witnessed some softness. Prices were assessed at INR 35,200/t ex-Rajkot, down by INR 600/t w-o-w, reflecting weak offtake from the foundry segment.
Market balance: Stable prices, pressured margins
In eastern India, participants noted that although offers are relatively higher compared to other regions, prices have unchanged over the past few weeks. However, producers in the region continue to face margin pressure, primarily due to firm coking coal prices, which are restricting any aggressive price corrections despite subdued buying interest.
In western India, adequate inventory levels and comfortable availability kept prices from moving upward, while demand from end-users remained moderate. Sellers indicated that stock sufficiency has capped any upside.
On the cost front, Australian premium hard coking coal (PHCC) prices increased by $1/t w-o-w to $ 218/t FOB, adding to cost-side pressure for Indian coke producers. However, in the last two weeks prices were increased sharply by $7-8/t.
China watch: Weakness persists
China’s domestic coke market continued to operate weak and steady. Sentiments remained bearish as steel mills adopted conservative procurement strategies amid subdued downstream demand. Coking enterprises continued to face losses and sales pressure, opting for flexible production controls rather than large-scale shutdowns. However, supply contraction continued to lag the pace of demand slowdown, keeping near-term recovery prospects limited.
Pig iron: Prices firm on auction strength
In the pig iron segment, steel-grade pig iron prices exw-Durgapur were assessed at INR 33,100/t, up INR 1,000/t w-o-w. Supporting the uptrend, SAIL’s Rourkela Steel Plant (RSP) auctioned 1,100 t on 18 Dec’25, with the entire volume sold at an average of INR 33,750/t exw, up INR 1,800/t compared to the previous auction on 29 Nov’25.
Outlook
In the near term, the Indian met coke market is expected to remain firm with a cautious buying amid rising coking coal costs which continue to pressure producers margin. However, steelmakers are eagerly waiting for anti-dumping duty and expected to release soon.
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