Met Coke prices in India will go down anytime soon due to the twin impacts of falling Coking Coal prices are weak demand in the country.
OFFERS DROP FURTHER
Offers from the key international market have gone lower than the rates assessed the week last. Declining Coking Coal prices have pulled down the offers.
The latest offer for the 64% CSR Met Coke is assessed lower by USD 9/MT at USD 326/MT CFR India. In a similar trend, the recent offer for the 62% CSR Met Coke is assessed at USD 323/MT CFR India, lower by USD 9/MT over the week-ago rate.
Source: CoalMint Research
Chinese sellers have quoted these offers at: USD 312/MT and USD 309/MT respectively on FoB basis.
INDIAN PRODUCERS TO LOWER PRICES
The prevailing demand pattern indicates that Met Coke producers in India will soon lower their ex-works prices. Demand is currently very low as buyers are waiting for Coking Coal prices to decline to the lowest possible levels postponing purchases.
Domestic producers in the country are yet to revise their ex-works prices downwards.
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).
However, demand will escalate as purchases will resume due to the Blast Furnaces operating at high rates.
In the meantime, Tata Steel has received environmental clearance for ramping up its steel production at its Jamshedpur facility to 11 MnT.
IMPORTS
Met Coke imports are gradually increasing. Despite imposition of Anti Dumping Duty in place, China has remained the favorite country of import among Indian buyers. During the 1-28Apr’17 period, around 0.34 MnT of Met Coke was imported into India, data gathered by CoalMint Research shows.
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