Slowing demand and cheaper imports of Met Coke has weighed upon Indian Met Coke prices, which have corrected almost by INR 1,800-2,500 MT (10-12%) during last 3-month.
The price cut has been majorly affected in eastern region, which is one of the largest consumers of Met Coke. However, the western region Coke prices have declined by 3-4% that’s less affected by weak demand from industries and lower offers from international market.
All major Coke manufacturers have reduced production as well and running under capacity by 60-75%. Some of the plants also reported to shut their production.
During last 3 months international Coke prices also fell by around 15% and currently, trading at USD 215-217/MT CFR India.
Increasing Imports of Met Coke (March & April)
During the Jan-April, 2014 India’s Coke imports increased by 5%and in April Coke import were 0.4 MnT. Coke imports increase in India majorly due to lower offers from international market. Basically, as the Coking Coal prices remained weak from long time, Coke manufacturers from China, Japan and other major exports have reduced their prices drastically and currently offering 66-64% CSR Coke at USD 215-217/MT CFR India.
Additionally, INR has been appreciated by almost INR 2 against USD and current levels (INR 59/USD) prompting industry to import from outside.
Domestic Offers
Domestically, prices have slashed by 10-12% in eastern market and 3-5% in western market. However, eastern market based major Coke producer, Bengal Energy is offering 25-80 mm Coke at INR 15,000-15,200/MT and 4-12 mm offering around INR 13,500/MT. In an auction by DPL, it has received bid of INR 15,200/MT Ex-Durgapur.
In western region, a major Coke producer, Sourashtra Fuels is offering at around INR 15,000/MT, however currently they are out of stocks.
SteelMint noted that manufacturers offering discount also according to buyer’s demand on the basis of quantity & payment terms.
Note: All prices are basic price and taxes extra.
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