Indian met coke prices have been recorded at INR 34,000-35,000/tonne (t) ex-Jajpur this week. Prices remained unchanged w-o-w due to sustained better import offers and reduced purchasing activity. Imported prices continued to yield more favourable returns compared to domestic materials.
Coking coal offers
Australian premium hard coking coal prices dropped by 2% on a weekly basis and are currently assessed at $320/t on 2 February, 2024. Market offers alleviated earlier supply constraints, with end-users reporting reduced tradable indications throughout the week. The impact of ex-cyclone Kirrily on mining operations was limited, and current cargo resales played a pivotal role in the market correction.
Despite being priced at $320/t, Australian coking coal surpassed the cost of domestic material, compelling merchant cookeries to resort to importing coke and blending it with local material.
Imported coke prices
Chinese met coke prices are assessed at $365/t CNF India, for 65% CSR, CFR India. The met coke segment exhibited price stability throughout the week, aligning with consistent indicative offers. Anticipated is a sustained market stability in the approaching weeks preceding the holiday period. Discussions regarding a third round of coke price reductions have largely diminished, giving way to talks about production cuts within the coke market.
Pig iron market
Indian pig iron prices rose by INR 100/t w-o-w and were assessed at INR 38,600/t DAP Durgapur on 2 February 2024. However, prices dropped by INR 300/t w-o-w in the Raipur market and are currently assessed at INR 37,350/t DAP- Raipur.
Outlook
Imported met coke prices may continue to be range-bound on reduced prices of imported material. Prices may either drop or may maintain stagnancy due to unviable domestic offers. However, falling Australian coal prices may provide some stability to the coke market.