Met Coke prices in India are expected to go down in the coming days as Coking Coal prices are sinking on account of resumption of the coal supplies in Australia.
DEMAND STAYS LOW
Demand for Met Coke is low in India as buyers have postponed their purchases in the prospect of the prices coming down to significant levels as prices of Coking Coal, the prime ingredient, are declining. Buyers, spoken to by CoalMint, said that they were waiting for prices to decline as low as possible before resuming their purchases. However, purchases will escalate in the coming days as steel making is on a full-swing in the country.
OFFERS DRIFT DOWN
Met Coke offers have drifted downwards as Coking Coal prices were moving down. The latest offer for the 64% CSR Met Coke is assessed lower by around USD 4.5/MT at USD 335/MT CFR India. The recent offer for the 62% CSR Met Coke is also assessed down by around USD 3.5/MT at USD 332/MT CFR India.
Source: CoalMint Research
Chinese sellers have quoted these offers at: USD 321/MT and USD 318/MT respectively on FoB basis.
INDIAN PRICES LIKELY TO SLID
The down swinging Coking Coal prices will also pull down Met Coke prices in India in the coming days. Although most of the Indian producers have retained their ex-works prices at the last revised rates, one producer in the west coast was heard to lower its ex-works price by INR 2,000/MT to push sales in the low demand environment.
The current ex-works prices of the Blast Furnace grade in India are at: INR 25,000/MT (east coast) and INR 25,000-29,000/MT(west coast).
Source: CoalMint Research
IMPORTS
Met Coke imports have gained some momentum in India of late. During the 1-24Apr’17 period, around 0.27 MnT of Met Coke was imported into the country, data collected by CoalMint Research shows.
Leave a Reply