- Weak mill demand, ample supply weigh on tags
- Bids decline at SAIL, NMDC’s pig iron auctions
Met coke prices in eastern India declined for a third consecutive week due to persistent weak demand from steelmakers and ample supply, which led to panic sales by some producers. As per BigMint, 25-90 mm BF-grade coke was assessed at INR 32,300/tonne (t) ex-Jajpur, down INR 700/t w-o-w, as mills limited procurement. Prices in Gandhidham held steady at INR 31,000/t exw, supported by localised demand stability.
“There have been some panic sales in the domestic met coke market, which has further pulled down the prices. On the other hand, a fall in pig iron prices in recent auctions also weighed on met coke prices,” highlighted a producer.
Pig iron prices fall in recent auctions
On 13 May, SAIL’s Rourkela Steel Plant (RSP) auctioned 6,000 t of steel-grade pig iron, booking 1,500 t at a base price of INR 32,800/t exw. This was INR 700/t lower than the tags seen at the previous auction on 6 May, where 900 t were sold at INR 33,500/t exw.
NMDC’s domestic auctions reflected weak buyer sentiment as steelmakers remained cautious. In its 14 May auction, only 4,500 t of 10,000 t were booked at a base price of INR 32,500/t, lower than the 5 May auction, where just 1,500 t were sold at INR 33,000/t.
The reduced interest highlights uncertainty in the steel and pig iron markets, with buyers holding off for further price corrections. Additionally, pig iron prices fell INR 100/t d-o-d to INR 33,200/t exw-Durgapur.
Australian coking coal prices hold steady amid balanced global demand
Australian premium hard coking coal (PHCC) prices remained unchanged w-o-w at $191/t FOB Australia. The market remained balanced as global steel production growth slowed, keeping demand and supply relatively aligned.
China announces first round of met coke price cuts
China’s met coke prices remained stable last week, but warning signs emerged. Inventories at coking plants increased 12.6% to 764,500 t, and steel mill stock coverage rose to 12.4 days, indicating slower consumption. Port stocks at Rizhao and Dongjiakou fell 2.56% to 1.52 million tonnes (mnt) but were still 10% lower y-o-y, suggesting less active restocking by traders.
On 13 May, steelmakers in northern China implemented the first round of coke price cuts (RMB 50-55/t) in response to high inventories and slowing steel demand, marking a shift after a month of stable tags.
Though the US-China tariff rollback lifted short-term sentiment, it had minimal immediate effect on domestic coke demand, which is largely driven by internal construction and infrastructure sectors. At the same time, declining coking coal prices provided cost relief for coke producers but also signalled broader weakness in the raw materials market, reinforcing expectations of further coke price reductions.
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