MMTC has lowered Lam coke prices in line with weak demand and production cut by Blast Furnaces.
Other than the couple of reasons stated above, economical import offers at USD 164-165/MT CFR India has also dragged down prices.
The material produced by Neelachal Ispat, is being offered at INR 13,400/MT ex-plant and attracts no discounts presently. Earlier this month, MMTC was offering 11,500 MT Lam coke at INR 13,750/MT ex-plant which was not absorbed by market.
Other manufacturers in East India follow suit and prices go down to INR 13,000-13,500/MT ex works. Trade deals are anticipated to take place at INR 12,800-12,900/MT as few rakes have recently been sold at INR 13,000/MT (loaded).
Importers have been able to conclude deals at around USD 167/MT CFR India for high grade Chinese Lam coke and benefit by nearly INR 1,000/MT in comparison to domestic prices.
A cut throat competition between domestic and import market prices is underway. And, there is further scope for downfall in domestic prices. Coking coal imports to India are unexpected to rise much as compared to last month’s import, indicating low interest for imports and increase in domestic purchase of Lam coke.
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