- Upcoming Chinese festival to gauge met coke market movement
- Pig iron prices drop by up to INR 600/t w-o-w to INR 40,700/t
Indian met coke prices have remained majorly stable w-o-w at INR 35,500/t ex-Jajpur. The producers have kept offers stable at above 35,500/t levels. In a recent letter addressed to the Secretary, Department of Commerce, the steel industry has expressed grave concerns regarding the imposition of “safeguard quantitative restrictions” on the import of low ash metallurgical coke (met coke) into India. The letter emphasises the critical role of met coke in steel manufacturing and the potential adverse effects of these restrictions on the industry.
The letter highlights the potential setback to the Indian steel industry, which has made substantial investments in existing capacities and future expansions. The restrictions are seen as counter-productive to the government’s vision of making India self-reliant in steel production, a key element for manufacturing-led economic growth and infrastructure development.
In his concluding remarks, the steel secretary has appealed to the Secretary, Department of Commerce, to reconsider the DGTR’s recommendations in the broader interest of the Indian steel industry. He stressed that maintaining an unrestricted import policy for met coke is vital for sustaining the industry’s growth and ensuring its global competitiveness.
In response to above, the merchant cokeries have put forward their oppositions regarding the quality and related factors in the meeting. However, final decision to the DGTR recommendations remain pending.
Imported coke prices
Chinese met coke prices have been majorly unchanged at around $314/t CFR India.
Negotiations between mills and cokeries over met coke price adjustments have stalled, leaving market participants largely on the sidelines. They are awaiting more clarity on market direction after the Dragon Boat Festival holiday on 10 June.
Chinese coke exporters are not currently very active in the market with sellers holding onto offers awaiting clarity in market prices.
The mills and cokeries are yet to decide over coke price adjustments, with mills attempting to push prices down, which could subsequently impact the coking coal market. However, mills currently lack significant leverage to negotiate a price reduction due to their relatively low coke inventories.
Coking coal prices
Australian premium hard coking coal (PHCC) prices rose to $256.25/t FOB w-o-w against $240/t FOB a week ago. Australian coking coal prices increased by $8/t d-o-d to $256/t on 6 June, 2024 due to a scarcity of coal for July loading, with miners concentrating on increasing production in the final month of their financial year, resulting in lower availability in July due to maintenance activities. Meanwhile, the limited availability of resources has sparked a resurgence in purchasing activity and bidding competition.
Indian mills may start restocking as early as next week. However, it is not anticipated that this increased buying interest will lead to a substantial rise in prices.
Domestic end-users continued to primarily make purchases on a need-to basis, with most being reluctant to take the risk of buying cargo for future arrival, especially given the ample supply available domestically or at ports.
Pig iron market
Indian pig iron (steel grade) prices fell by INR 600/t w-o-w to INR 40,700/t Ex-Durgapur on 6 June. Similarly, prices fell by INR 100/t w-o-w to INR 41,100/t DAP in the Raipur market.
Outlook
Indian met coke market awaits clarity in price movement due to the DGTR recommendations yet to be implemented. Few Chinese participants are expecting price cut, and weak market on upcoming festival which might impact the Indian market to some extent.
