- Stable domestic market sees supply constraints
- Imports limited, buyers cautious about high-cost cargoes
The Indian metallurgical coke (met coke) market held stable during the week ending 28 August 2025, underpinned by limited domestic supply and delayed import arrivals. BF-grade (25-90 mm) coke was assessed at INR 29,000/t ex-Jajpur in eastern India, while western India ex-works Gandhidham prices stood at INR 30,000/t. Foundry-grade (more than 90 mm) coke remained unchanged at INR 35,600/t ex-Rajkot.
Buyers step in ahead of tightening supply
Trading activity showed gradual improvement as consumers moved to secure volumes in anticipation of tighter supply conditions. However, imports stayed restricted. High offers from alternate origins at $300-320/t CFR discouraged fresh bookings, while Indonesian cargoes around $235/t CFR drew stronger interest. Industry participants have urged the DGFT to continue approving Indonesian shipments, citing cost competitiveness against other origins.
Softer raw material costs offer relief signals
Upstream costs eased slightly as Australian premium hard coking coal declined by $2/t w-o-w to $186/t FoB. Sustained softness in coking coal prices could gradually reduce pressure on met coke tags in the near term.
China’s market split by regional policies
China’s met coke market displayed resilience, though demand trends varied by region. In Hebei and nearby provinces, strict environmental curbs and transport restrictions ahead of the 3 September parade reduced output and deliveries, forcing mills to cut production amid thinning inventories.
Meanwhile, mills in Inner Mongolia and Jiangsu benefited from healthy stockpiles, enabling them to slow down spot procurement.
Sentiment cautious despite price support
While supply tightness continues to support short-term sentiment, traders remain wary of sustainability. Many warn that the recent streak of price hikes may reverse by September if mills rely on existing inventories instead of chasing new cargoes.
Steel sector shows weak buying appetite
NMDC’s Nagarnar steel plant auctioned 10,000 t pig iron on 22 Aug’25, fully booked at INR 32,000/t (by road). However, bids came in INR 400/t lower than the previous auction on 7 August, reflecting weak appetite from buyers.
Outlook
The Indian met coke market is expected to remain steady in the near term, underpinned by limited domestic supply and cautious import activity. While port inventories offer some balance, buyers’ resistance to high-cost cargoes may weigh on imports. In China, near-term supply curbs support sentiment, but a potential correction looms post-September.
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