The Met Coke market is showing ample signs of the prices falling to significant levels in the near future.
Lack of active buying and sliding prices of Coking Coal have been acting as the combined forces in pulling the Met Coke prices downwards. Met Coke buyers have adopted wait-and-watch stance until the prices decline to significant levels before resuming purchases.
On account of the inactive buying activity, domestic Met Coke prices in China—the main Met Coke producing market globally—also have sunk. In communicating with some Chinese traders, prices of Met Coke were learnt to have gone down in China by around Yuan 100/MT than the earlier prices. In the Chinese markets, Met Coke was sold at around Yuan 1,920/MT.
According to the latest data released by the National Bureau of Statistics in China, around 35 MnT of Met Coke was produced in China in Dec’17; and that was higher by around 7.9% year-on-year. During 2017, the Met Coke production in China was at around 431.4 MnT, a marginal rise of about 1.4% over the production in 2016, according to the released data.
Export offers for the 64% CSR Met Coke have gone down to around USD 365/MT FoB China, down by around USD 8/MT against the offers in the week last. At the same time, export offers for the 62% CSR Met Coke also have declined by around USD 8/MT, against the week-ago offers, to around USD 355/MT FoB China.
Source: CoalMint Research
These offers, for Indian buyers, amount to: USD 381/MT and USD 371/MT respectively on CFR India basis.
The Indian Met Coke buyers have not been different from the global counterparts. Met Coke buyers in India also have been waiting for the global offers to fall to the maximum.In view of the postponement in buying, Indian Met Coke producers have lowered their ex-works prices.
In the east coast of the country, the producers are yet to decide their downward price revisions, but some producers in the west coast have lowered their prices in the range of INR 1,000-5,500/MT.
Source: CoalMint Research
The prevailing ex-works prices for the Blast Furnace grade in India are: INR 25,000/MT (east coast); and INR 26,000/MT and INR 27,000/MT (west coast).
During the 1-19Jan’18 period, around 0.2 MnT of Met Coke imports had landed at Indian ports, data compiled by CoalMint Research shows.
The following are the Met Coke freight rates prevailing:
| Freight in USD/MT | ||||||||
| LOAD PORT | COUNTRY | DISCHARGE PORT | COUNTRY | CARGO INTAKE(in MT) | LATEST FREIGHT | LAST Week | LAST MONTH | STATUS |
| Xingang | China | Paradip | India | 22,000 | 18.77 | 17.58 | 17.72 | Up |
| Xingang | China | Paradip | India | 44,000 | 13.17 | 12.61 | 13.27 | Up |
| Xingang | China | Hazira | India | 44,000 | 15.19 | 14.61 | 15.22 | Up |
| Xingang | China | Paradip/Haldia | India | 44,000 | 14.9 | 14.3 | 15.02 | Up |
| Xingang | China | Mumbai | India | 38,000 | 14.12 | 13.33 | 14.34 | Up |
| Xingang | China | Hazira | India | 38,000 | 14.8 | 14.04 | 14.98 | Up |
| Xingang | China | Paradip | India | 38,000 | 12.31 | 11.61 | 12.54 | Up |
| Xingang | China | Paradip/Haldia | India | 38,000 | 13.44 | 12.71 | 13.69 | Up |
| Nikolaev | Ukraine | Hazira | India | 41,000 | 41.33 | 40.22 | 39.59 | Up |
| Nikolaev | Ukraine | Paradip | India | 41,000 | 44.33 | 43.04 | 42.3 | Up |
| Nikolaev | Ukraine | Paradip/Haldia | India | 41,000 | 46.6 | 45.26 | 44.49 | Up |
| Nikolaev | Ukraine | Mumbai | India | 33,000 | 39.79 | 38.45 | 38.5 | Up |
| Nikolaev | Ukraine | Hazira | India | 33,000 | 39.98 | 38.74 | 38.71 | Up |
| Nikolaev | Ukraine | Paradip | India | 33,000 | 43.96 | 42.42 | 42.38 | Up |
| Nikolaev | Ukraine | Paradip/Haldia | India | 33,000 | 45.6 | 44.01 | 43.97 | Up |
| Barranquilla | Colombia | Vizag | India | 33,000 | 44.74 | 42 | 46.01 | Up |
| Barranquilla | Colombia | Hazira | India | 33,000 | 52.01 | 49.5 | 53.08 | Up |
Source: Bulk Marine
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