Consumer activity has increased somewhat in the Indian market for coke this month as importers have decided to replenish stocks ahead of the monsoon season, which will start in June and hamper the material delivery.
In particular, some 60,000 t of Ukrainian coke has been bought at $280-290/t FOB (estimated – $320-330/t C&F). Besides, about a batch of about 75,000 t of Russian material has been booked at $295/t FOB ($325-330/t C&F) with June-July delivery in the past month.
Prices for Chinese coke of $490-500/t FOB ($520-525/t C&F) remain too high to Indian consumers due to 40% export duty. Even after FOB quotations drop by $5-10/t in the near future amid the decline in prices for the material in the domestic market started in the second half of May, Chinese suppliers will fail to do more business in the global market.
Although occasional deals are made, Indian steelmakers still show moderate demand for import material, since the situation in the finished product segment stays unfavourable. Another factor restraining import purchases is devaluation of the rupee, which makes domestic buying more profitable. Like in early May, local coke is quoted at INR 20,500-21,000/t delivered, but in view of the weaker currency (the current exchange rate is $1 = INR 56.006) prices for the material in the dollar terms have dipped to $366-375/t ($385-394/t in early May).
Indian coke consumers will decrease buying in June given the beginning of the monsoon season. The material will be imported under the previously signed contracts, while new deals with foreign suppliers will be made in August at the earliest.
Source: ME
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