- Prices in eastern India trading at four-year low
- Third round of coke price cuts under discussion in China
Indian metallurgical (met) coke prices witnessed a notable decline last week, reaching their lowest levels in five months. The price drop is largely attributed to subdued market sentiment, weak buying interest, and growing uncertainty in the downstream steel sector.
According to BigMint’s latest assessments, prices for 25-90 mm blast furnace (BF) grade met coke dropped by INR 700/t to INR 30,800/t ex-Jajpur, marking a significant week-on-week fall. Jajpur prices have hit lowest since Aug’21, as per data maintained with BigMint. In Gandhidham, prices declined by INR 200/t w-o-w to INR 30,600/t ex-works, reflecting muted trading activity across key consumption hubs.
Weak steel market dents coke procurement
Market participants noted a sharp reduction in met coke enquiries and transactions, as steel producers remain hesitant to make fresh purchases. The ongoing decline in steel prices has led many manufacturers to defer procurement, wary of replenishing inventories at elevated cost levels.
As one trader noted, “The outlook for the steel market remains unclear, so buyers are reluctant to purchase met coke with no visibility on end-use demand.”
Further dampening sentiment, importers remain cautious amid an ongoing QR extension and anti-dumping investigation.
Adding to the headwinds, there is still not confirmation that the current quantitative restriction (QR) quota on met coke imports initially implemented for part of 2025 could be extended for the entire year. Such a move could significantly impact both import strategies and domestic price stability.
China’s met coke market mirrors global weakness
Mirroring the trend in India, China’s met coke market has also weakened due to seasonal demand lull and persistent oversupply. Inventories at coking plants rose by 27% w-o-w, while steelmakers cut back on coke procurement amid falling steel prices and cautious outlooks. There are reports that third round of price cut in met coke is expected towards the weekend.
Despite minor macroeconomic support, the Chinese market remains under pressure, reinforcing bearish sentiment across the global met coke landscape.
Outlook: Bearish in the near term, stabilisation hinges on steel recovery
Indian met coke prices are expected to remain under pressure in the near term amid weak steel demand and ongoing policy uncertainty. A potential recovery hinges on improved steel market conditions, regulatory clarity, and inventory corrections by producers and importers.
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