India’s domestically produced metallurgical coke prices have held mostly steady since last week, on the back of a stable demand from domestic steelmakers.
Domestic met coke offers from cokeries in several parts of the country are being quoted at elevated levels, as rainfall-induced supply tightness has limited material availability, although buyers have yet to commit to higher bids.
Domestic steel demand recovery support import demand for met coke
The Indian spot demand for imported met coke has improved amidst the steady recovery in demand growth from the domestic steelmaking industry.
The country’s large-scale integrated steelmakers – with captive iron ore mines, downstream facilities and easier access to export markets – have increased blast furnace operations to optimum levels.
A surge in demand from the automotive and white goods sectors and moderate activity in government infrastructure projects are driving the recovery in domestic demand for steel products in India. Steel mills are heard fetching their full contracted term volumes while some are even heard to be seeking cargo advancements.
Declining coking coal prices may exert downward pressure on met coke prices
Seaborne coking coal prices have fallen sharply in recent week, as demand sentiment weakened amid growing panic over the impact of probable coal import restrictions in China. Accordingly, some cokeries may consider lowering offer levels in the light of decreased cost of producing met coke.
Latest offers for Australian premium hard coking coal are assessed at around $121/t on CNF India basis, with average spot prices having slumped considerably, spurred by reports of China-bound coal-laden vessels being diverted elsewhere and customers deferring inbound shipments from Australia.
India Coal Import Vessel Lineup
CoalMint’s latest vessel lineup data (as on 26 Oct’20) reveals that an aggregate shipment volume of 99,341 t of imported met coke has been received since 16 Oct’20 in India — 36,700 t at Haldia, 23,000 t at Paradip and 39,641 t at Vizag port.
Notably, all of these inbound met coke consignments have been sourced from different countries, other than China, viz. Netherlands (39,641 t), Japan (22,000 t) and Colombia (37,700 t).
Price Assessments
Indian import prices of met coke are currently hovering between $295-300/t for the 64% CSR grade on CNF India basis.
Indian domestic met coke prices of the 25-90 mm, blast furnace grade are currently assessed at around INR 23,000/t (east coast) and INR 23,500/t (west coast).
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By Aditya Sinha
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