MARKET TREND
The Met Coke buyers have again come under the influence of uncertainty arising out of rising prices of the material after the Chinese Lunar Year holidays getting over.
According to the market inputs received, purchases of Met Coke have resumed actively in China as steel makers there were in the process of running their plants at full-capacities. At the same time, there are also quite a number of steel mills in China that did not stock Met Coke prior to the holidays; and these mills are now procuring vigorously to cater to their immediate production needs.
Strong buying has now prompted the domestic Met Coke sellers in China to raise their prices. In a communication with a Chinese trader, it was learnt that market prices of Met Coke in the Shanxi region had gone up at least by Yuan 100/MT after the market returning to operations after the holidays. According to the trader, Met Coke was sold there at around Yuan 1,950/MT.
As a matter of fact, China is the largest Met Coke market in the world, and any change in the market dynamics there will impact the other consuming markets, such as India.
PRICE TREND
Reflecting the strengthening of demand, export offers from the key international market—China—also have gone up.
Offers for the 64% CSR Met Coke are up by around USD 5/MT over the week-ago offers to around USD 360/MT FoB China. Likewise, offers for the 62% CSR Met Coke are quoted at around USD 355/MT FoB China, up by USD 5/MT against the offers in the week last.
Source: CoalMint Research
On CFR India basis, these offers amount to: USD 376/MT and USD 371/MT respectively.
In the meantime, a Columbian Met Coke offer was heard at around USD 375/MT FoB.
Indian buyers have once again turned back from the market as they preferred monitoring the market movement before procuring actively. In view of the rising export offers, they preferred purchasing on need basis, restricting from buying in excess of their requirements.
Indian Met Coke producers also have no reason to revise their ex-works prices as there was no gain in the buying strength. The producers have thus kept their ex-works prices unchanged except one producer in the west coast which hiked its price by INR 500/MT, mainly due to the rising Coking Coal prices in the key international market.
The prevailing ex-works prices for the Blast Furnace grade in India are: INR 24,500-25,000/MT(east coast) and INR 25,500-27,000/MT (west coast).
Source: CoalMint Research
IMPORTS
There was no spurt in Met Coke imports in India due to the uncertainty in the market movement. During the 1-26Feb’18 period, only 247,449 MT of Met Coke was imported in the country, according to the data compiled by CoalMint Research.
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