Met Coke offers from the key international market—China—have drifted downwards as bearish sentiments prevailed in that country on account of the steel production-cut round the corner. As reported earlier, the Chinese government has mandated cutting down steel production in that country by 50% during the mid-Nov’17 to mid-Mar’18 period in order to curb atmospheric pollution levels. Aided by the bearish sentiments, Coking Coal prices have also been falling, which compounded to the decline in Met Coke offers.
The latest offers for the 64% CSR Met Coke are assessed at around USD 342/MT FoB China, which is lower by around USD 10.50/MT against the offers in the last week. In a similar trend, the recent offers for the 62% CSR Met Coke are assessed at around USD 332/MT FoB China, down by around USD 15.5/MT over the week-ago offers.
Source: CoalMint Research
For Indian buyers, these offers translate into: USD 357/MT and USD 347/MT respectively on CFR India basis.
In India, demand for Met Coke is strong as high levels of Pellet productions are going on in the country. Indian Pellets are gaining heavy export demand, particularly to China, where the domestic production cut has raised the import demand.
Indian Met Coke buyers have preferred the domestic market over the overseas markets as the domestic Met Coke prices are relatively cheap. And, as a consequence of the prevalence of strong demand in the country, the domestic Met Coke producers in India have not revised their ex-works prices.
The prevailing ex-works prices for the Blast Furnace grade in the country are: INR 22,200/MT (east coast),and INR 27,000/MT and 30,000/MT (west coast).
Source: CoalMint Research
In the meantime, the West Bengal based Purulia Metal Casting Private Limited is in the process of setting up a 59,310 TPA Mini Blast Furnace and a 51,000 TPA Sinter plant at the Bongabari village in the Purulia district of West Bengal. Post commissioning, the Mini Blast Furnace will require around 38,550 TPA of Met Coke; and the Sinter plant will require around 3,762 TPA of Breeze Coke as key feedstock. Speaking to CoalMint, an official of the company said that the project will be ready for commissioning within one year.
IMPORTS
During the 1-23Oct’17 period, around 0.3 MnT of Met Coke was imported in India, data compiled by CoalMint Research shows. There was no spurt in the imports as the buyers in the country mostly preferred the domestic market over the foreign markets.
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