Indian met coke prices have been recorded at INR 32,500/tonne (t) ex-Jajpur this week. Prices dropped by INR 1,000/t w-o-w. Imported met coke prices are at a discout to domestic material.
Interest in procurement of coking coal remains subdued due to the continuous fall in prices. Also, buyers remain sidelined, expecting a further price drop.
Indian met coke imports have been recorded at 0.22 mnt in March as against 0.33 mnt in February, as per data maintained with BigMint.
- A trade was concluded for 5,000 t of met coke at INR 32,500/t ex-Jajpur.
- 8,000 t of Indonesian met coke was heard sold at INR 27,500/t at Vizag port.
- A deal was heard concluded in the west for about 3,000 t at INR 33,000/t.
- Met coke prices in the south Indian market fell another INR 500/t w-o-w in recent deals. A buyer concluded a deal for about 10,000 t at about INR 32,000/t
- An eastern India-based coke producer was heard to have concluded a deal at about INR 32,300/t.
Australian coking coal prices drop to 8-month low
Australian coking coal prices have been steadily falling for many months. Prices are currently assessed at $228/t, down 7% w-o-w on 4 April 2024, amid reduced offer levels. Sellers adjusted their offers downward on an oversupplied market. Demand from major importing nations such as India and China remained subdued, as end-users fulfilled their pre-monsoon procurement, while Chinese buyers were inactive during the Qingming Festival holidays.
Coking coal market sentiments were dampened as the number of potential buyers from India declined, attributed to Indian end-users fulfilling their pre-monsoon procurement requirements. Buyers are now expecting sellers to reduce their offers due to increased competition among suppliers.
Imported coke prices
Chinese met coke prices are assessed at $313/t CNF India, for 65% CSR coke. China’s met coke producers have accepted the seventh round of price cut on 29 Mar’24 in light of sufficient supply and a recent drop in coking coal prices. Met coke prices in Hebei’s Tangshan were assessed at RMB 1,760/t ($244/t), a decrease of RMB 100/t ($14/t) d-o-d. Steelmakers opted for lower coke prices to bolster profit margins.
A decline in activity is evident in the Chinese coke market, likely attributed to the approaching Qingming festivities. There is a possibility of leading mills advocating an eighth price reduction, citing the need to alleviate cost pressures exacerbated by sluggish finished steel prices.
Chinese prices of metallurgical coke will likely ease further over the first half of April and then hold steady during the remainder of the month. This prediction considers subdued buying interest among steel producers, who are maintaining low feed stocks to mitigate risks and sustain profitability amidst slightly improved steel margins.
The upcoming eighth coke cut prompted Indonesian sellers to significantly reduce their offers, aiming to compete with lower-priced Chinese coke. With coking coal prices continuing to decline, Indonesian sellers must consider these reduced raw material costs alongside the decreasing domestic Chinese coke prices compared to current expenses, which has mounted pressure on Indonesian coke.
Pig iron market
Indian pig iron prices rose by INR 1400/t w-o-w and were assessed at INR 39,000/t DAP Durgapur on 4 April 2024. Moreover, prices rose by INR 1300/t w-o-w in the Raipur market and are currently assessed at INR 38,500/t DAP- Raipur.
Outlook
Met coke prices are not expected to rise in the near term and may remain at steady levels on reduced buying activities and lower demand from major buyers. Buyers are sidelined and anticipated decline in coking coal prices may lead to coke prices dropping further.