Indian producers have raised met coke offers by INR 1,000/t in line with the rise in coking coal prices which have gone up by $30/t since the start of January. Current offers for blast furnace grade met coke (25-90mm) are currently heard at INR 42,000-43,000/t ex-Jajpur.
However, a major deal for met coke was heard at INR 41,300/t in eastern India and since then although offers have increased, no deal has been heard at increased rates. Buyers are unwilling to accept higher prices as they still have cheaper imported coke inventory from China and even Poland.
Also, although flat steel prices have risen by INR 2,500/t in last 20 days, domestic demand is not that buoyant. While the integrated steel mills are eyeing export markets after the removal of export duty, the secondary mills are facing sluggish demand as buyers are making need-based purchases.
Coking coal prices
Australian coking coal prices have risen and are currently assessed at $325/t FOB Haypoint, Australia for premium grade coal. Prices have risen due to China slowly resuming Australian coal imports and also rains in Australia disrupting supplies.
What lies ahead?
During the ongoing Lunar New Year holidays in China, any major movement in raw material and finished steel prices looks unlikely. However, from the beginning of February steel and coal prices are expected to rise providing some support to Indian met coke prices.
Leave a Reply