- Met coke market bullish on tight Indonesian supply, rising input costs
- Price gains likely due to firm Chinese buying and improving steel demand
India’s imported metallurgical coke market strengthened sharply, with Indonesian BF-grade met coke (65/63 CSR) rising $22/t w-o-w to around $357/t CFR India. The rally was driven by higher Indonesian FOB offers, elevated freight rates and stronger Chinese procurement.
Market indications suggest Indonesian FOB offers have reached $330-335/t, with freight around $25-30/t, while water-related disruptions, vessel movement constraints and reported force-majeure declarations at some mines are further tightening availability.
A 55,000 tonnes transaction at $230/t FOB Indonesia was also reported, although current replacement costs are significantly higher.
“There are limited offers at the moment from Indonesia due to draft issues, hence price indications have shot up”, cited a trader.
Domestic met coke: Costs push prices to multi-year highs
India’s domestic met coke market continued its sharp uptrend in the week ended September 3, supported by tighter availability, improving downstream demand and surging imported coke and coking coal costs. BF-grade met coke in eastern India rose INR 3,000/t w-o-w to INR 40,000/t ex-Jajpur, a nearly 3.5-year high, while western India increased INR 1,200/t to INR 35,000/t ex-Gandhidham. Foundry-grade coke also climbed INR 1,400/t to INR 38,000/t ex-Rajkot both nearly 2.5 years high.
A market participant mentioned that “further it reflects the market will remain elevated. Rising replacement costs are likely to keep domestic offers firm.”
China coke market: Supply tightness sustains bullish sentiment
China’s coking coal and met coke markets remained firm on September 2, underpinned by constrained coal supply, strict mine-safety controls and active downstream procurement. Limited production recovery, combined with elevated raw coal costs, has kept several coke plants under margin pressure and encouraged production cuts.
Major coking coal producers have initiated a fourth price increase of Yuan 100-110/t ($ 15-16/t), with some steel mills accepting the hike effective September 3, reinforcing the near-term bullish sentiment.
Coking coal: Chinese buying adds upward pressure
Australian premium hard coking coal FOB prices strengthened by $15/t w-o-w to $ 276/t, supported by renewed Chinese buying interest and tighter availability. Firm Chinese demand is adding further support to the global raw-material complex and increasing replacement costs for Indian coke producers.
Pig iron exports surge as domestic availability tightens
India’s pig iron exports surged over 200% y-o-y to around 1 mnt during January-July 2026, compared with 0.32 mnt in the corresponding period last year, with July exports alone reaching around 375,800 t, up sharply from 120,000 t in June and 210,000 t in May. Stronger export realisations in the US and Türkiye. Meanwhile Indian pig iron players with Advance Authorisation Scheme have continued to remain active in met coke imports. Apart from pricing, imported coal continues to offer operational advantages in terms of quality.
Also, Durgapur steel-grade pig iron prices rose INR 800/t w-o-w to INR 40,000/t ex-works, supported by higher met coke and other ferrous raw-material costs.
Outlook
The near-term outlook for Indian met coke remains bullish, with tight Indonesian availability, rising coking coal costs and higher freight likely to keep imported coke prices elevated. Domestic met coke prices are expected to remain firm as producers face substantially higher replacement costs, while improving steel and pig iron demand provides additional support.
Further upside is possible if Indonesian supply disruptions persist and Chinese buying stays active, although elevated prices could eventually face resistance from weaker downstream margins and demand elasticity.
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