- Premium coking coal prices down by $7/t w-o-w
- DGTR’s decision on import restrictions stays pending
Current Indian met coke prices are in the range of INR 34,800 per tonne (t) ex-works Jajpur stable w-o-w, with a few merchant cokeries offering above INR 35,000/t. In western India, prices dropped by INR 200 to INR 32,700/t. Indian met coke prices saw a slight decrease w-o-w in some markets.
The imported material is heard to be inexpensive compared to domestic levels in current scenario.
An inter-ministerial meeting was scheduled for 15 July, 2024, to discuss the Directorate General of Trade Remedies (DGTR) safeguard recommendations on the import of low ash met coke. Organised by the Ministry of Commerce & Industry with other stakeholders, the meeting aimed to address potential import restrictions.
Sources suggest that a decision on restricting met coke imports to India is expected by the end of this month. The outcome of this meeting will be crucial in shaping the future of met coke imports. Also, in talks with market participants, we heard that the import quotas may be altered to benefit the stake holders before being implemented.
Chinese coke prices
In met coke, prices were heard to be under pressure on waning Indian demand. Chinese CSR 65% offers were relatively stable at around $300/t FOB China for August laycan cargoes, despite expectations that China may soon launch another round of coke price cuts this week.
Coking coal prices fall w-o-w
Australian premium hard coking coal (PHCC) prices dropped by $7/t w-o-w to $225/t FOB w-o-w.
Coking coal prices fell on low demand and sufficient supply. Limited buying interest is seen by Asian buyers. Buyers are hesitant to commit to procurement plans due to the steady decline in coking coal prices. Traders indicated that with supply exceeding demand, further price drops are inevitable. Also, reselling interest in the market was seen and expected further price fall in the market is keeping transactions on lower side.
Indian buyers anticipated further price declines amid a downtrend in the coking coal market with ample supply at Indian ports. Also, end-users were heard delaying coke procurement, expecting prices to drop further.
Outlook
Indian met coke prices are expected to see decline with market sentiments remaining bearish due to weak steel prices. The met coke and coking coal markets are expected to face continued downward pressure in the near term on subdued trades and low buying interest accompanied with awaited DGTR import recommendations.
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