Despite decline in Coke prices at international market, western region Coke manufacturers abstained to reduce prices and offering at same level.
Largest Coke manufacturer Gujarat NRE maintained its prices and offering 25-80 mm Coke at INR 17,000/MT Ex-Kandla. Another major Coke manufacturer based in Gandhidham is offering 40-60 mm Coke at INR 18,500/MT.
SteelMint noted that the western region Coke is used in the steel industry and due to high demand from steel makers, Coke manufacturers are reluctant to reduce their prices.
[su_quote]A Coke manufacturer said, “We see good demand from market and supplying accordingly. We are also positive for coming months as during this season demand usually on higher side”.[/su_quote]
Eastern Coke Producers Struggling with Demand
With respect to decline in international Coke prices, eastern India Coke producers have declined their prices by around INR 200-1,400/MT.
Major state owned producer Neelanchal Ispat Nigam Limited (NINL) has reduced its Coke (25-80 mm) prices by around INR 1,400/MT and offering at INR 15,600/MT Ex-Cuttack basis.
[su_quote]Market experts said, “NINL’s material is usually supplied to the state owned units like SAIL. With respect to their Coking Coal booking at low prices, NINL has to cut down its Coke prices”.[/su_quote]
Other eastern region Coke producers have declined their offers by INR 200-650/MT as Coke demand is majorly from Ferro Alloy industry. The industry is also facing dull demand which led to decline in Coke requirement.
[su_quote]Guwahati based Coke trader said, “Demand from Ferro industry has been dropped which dragged down the Coke prices as well. Owing to dull market, around 5-6 Coke manufacturers have shut down their operations as they are going through a financial crunch and rest are struggling in the current market”.[/su_quote]
Guwahati Coke trader has slashed its prices by INR 650/MT and offering 40-80 mm LAM Coke at around INR 16,500/MT Ex-Guwahati. Another Kolkata based manufacturer has declined its offers by INR 500/MT and offering Foundry grade 80-150 mm Coke at INR 19,500/MT Ex-Kolkata.
Vizag based Coke manufacturer also slashed its prices by around INR 200-300/MT and offering at around INR 15,800/MT Ex-Vizag.
[su_quote]A manufacturer said, “We are facing decline in asking Coke prices with respect to the decline in international Coke prices”.[/su_quote]
Market veterans are expecting market to bounce back with an anticipation to occur after general elections.
[su_quote]A Manufacturer based in Vizag said, Market cannot be anticipated in current stage as demand of Coke is there, but asking prices have dropped because of international weak Coke prices sentiments. Small Coke manufacturers have purchased the material at USD 150-155/MT CIF which make the costing high for manufacturers and international weak Coke prices forcing them to drop prices. However, we are expecting market to pick up and we are in wait & watch mode till end of general elections.[/su_quote]
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