The Met Coke market in India has been quiet as buyers were not purchasing the material as they waited for the onset of July’17, when the GST norms will be functional, and market movements will become clear.
The GST norms will become functional after 30Jun’17. The GST rate for coal was put on a lower slab, at 5%. The hitherto rate is higher at 11.69%. Post functionality of the GST norms, prices of Met Coke are expected to go lower due to the reduction in the rate.
Offers from the key international market have not undergone any change from that the week last. The latest offer for the 64% CSR Met Coke is assessed steady at USD 264/MT CFR India. And, the recent offer for the 62% CSR Met Coke is also assessed stable at USD 261/MT CFR India.
Source: CoalMint Research
Sellers have quoted these offers at: USD 253/MT and USD 250/MT respectively on FoB China basis.
In India, the domestic producers have preferred keeping their ex-works prices unchanged in view of the lackluster demand in the market. However, one producer in the west coast of the country has lowered its ex-works price by INR 500/MT due to the prevalence of weak demand.
The ruling ex-works prices in India of the Blast Furnace grade are at: INR 21,500/MT (east coast) and INR 21,000/MT, INR 23,000/MT, INR 24,000/MT, INR 25,500/MT (west coast).
Source: CoalMint Research
IMPORTS
Met Coke imports also have remained low due to the sluggish purchasing affinity among Indian buyers. During the 1-19Jun’17 period, a meager volume of 190,620 MT of Met Coke was imported in India, data collected by CoalMint Research shows.
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