Met Coke prices in India are likely to go up in the coming days, as revealed by the latest market developments.
The impact of the ban on coal imports into China, imposed by the Chinese government in Feb’17, has now started showing. Subsequent to the imposition of the ban, Coking Coal prices started escalating in the Chinese market. Prices of Met Coke, produced with the higher priced Coking Coal, are now been quoted higher.
Coal imports into China from North Korea were predominantly Anthracite Coal, which is also used in the coke producing process by partially blending with Coking Coal. As the imports were banned, prices as well as demand for Coking Coal has increased, resulting in Met Coke prices going up in that country.
The latest import offer for the 64% CSR Met Coke is quoted remarkably higher at USD 279/MT CFR India, which is up by USD 14/MT than the week-ago rate. Similarly, the latest import offer for the 62% CSR Met Coke is also higher by the same amount, at USD 276/MT CFR India.
Source: CoalMint Research
Sellers in China have quoted these offers at: USD 265/MT and USD 268/MT respectively on FoB China basis.
In India, demand has started strengthening, after the lull following the demonetization in Nov last year. The strengthening demand, coupled with the rising import offers, will push up Met Coke prices in India.
However, domestic producers in India have not yet revised their ex-works prices upwards.
Thus, the ruling ex-works prices in India for the Blast Furnace grade are at: INR 20,500/MT (east coast) and INR 20,500-26,500/MT(west coast).
Source: CoalMint Research
IMPORTS
Met Coke imports have not yet regained momentum, and remained low. During the first two weeks of Mar’17, only 0.16 MnT was imported into India, data compiled by CoalMint Research shows.
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