Metallurgical coke prices in India remained firm over the past couple of weeks as coking coal cargoes booked at all-time high prices in March, 2022 arrived this month. The trade price for blast furnace grade (25-90mm, 64% CSR) coke is assessed at INR 60,000/t in both eastern and western India, while a few offers were heard at INR 62,000/t.
Sluggish domestic demand, export deal
In terms of demand while there was not much enquiry in the domestic merchant market as pig iron producers were heard covered as of now, NINL’s requirement of 50,000 t of coke every month for the next one year provided some support to domestic coke prices, informed market participants.
On the other hand, a few enquiries are being heard for Indian met coke from Europe. In a confirmed deal for 50,000 t of 65% CSR coke, an export deal was heard concluded at $760/t FOB Dhamra, eastern India, for August shipment. While for June shipments prices are being quoted at $800/t FOB.
CoalMint’s data shows India exported a total of 275,390 t of coke during January-April, up 72% against the same period last year, with 58% being diverted to the European market.
Coking coal prices above $500/t
Australian coking coal prices for premium hard grade are currently assessed at $518/t FOB Haypoint. Although supplies have improved, coking coal demand remains firm from Europe, Japan and South Korea. On the other hand, Indian buyers are wary of booking coking coal at such high rates and are making spot bookings only as per their requirements.
Pig iron prices down INR 2,000/t
India’s domestic pig iron prices (steel grade) have inched down INR 2,000/t this week to INR 57,000/t ex-Durgapur. Even HRC prices (2.5-8 mm, IS2062) have decreased by INR 1,300/t w-o-w to INR 73,700/t exy Mumbai.
Domestic steel demand has turned weak amid elevated prices amid minimal and need-based infrastructure consumption. In terms of exports, overseas buyers are heard to be covered till the third week of May.
Outlook
Indian met coke prices may remain firm in coming days and might see a correction only if imported coking coal prices fall below $480/t FOB Australia.
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