Met Coke prices in India have remained unchanged from the rates prevailed the week last. Market participants speculate the prices to rise in the near term as import offers have gone up significantly due to upswinging Coking Coal prices.
Higher Coking Coal prices have lifted Met Coke import offers further. As learnt in a communication with a reputed importer, the latest import offer of the 64% CSR Met Coke has gone up to around USD 317/MT CFR India. In a similar trend, the latest import offer of the 62% CSR Met Coke has moved up to around USD 302/MT CFR India, according to the importer.
Deducting the freight rate, the export offers of the Met Coke variants could be assessed at: USD 305.5/MT and USD 290.5/MT respectively on FoB China basis.
Most of the domestic producers in India have retained their ex-works prices at the rates in the week last. The prevailing ex-works prices of the Blast Furnace grade in the country are: INR 23,500-26,500/MT(west coast) and INR 21,500/MT(east coast).
Source: Market Participants
Quite understandably, Indian producers will further raise their ex-works prices in response to the rising import offers.
Demand has been strong in the country as buyers procured actively to stock the material before the announcement of levying Anti Dumping Duty.
STEEL INDUSTRY OPPOSES ANTI DUMPING DUTY ON MET COKE
The majority of the buyers in India are optimistic over the expected announcement by the Finance Ministry of imposition of Anti Dumping Duty on imports of Met Coke; however, the steel industry is an exception as imposition of the duty is considered detrimental to the segment.
The Indian Steel Association has recently requested the Government of India (GoI) not to impose the duty as it will result in raising prices of steel products that will hamper the competitiveness of the industry.
The association reasoned that steel prices will go up by at least INR 700-1,500/ton, post imposition of the duty. Moreover, the quality of Met Coke supplied by the domestic producers is also not up to the mark for the country’s steel producers, according to the association. For steel mills to run efficiently, Met Coke with less ash and Phosphorus content is essential that is better met by imported Met Coke in comparison with the domestic variants.
IMPORTS
During the first week of Nov’16, 132,770 MT of Met Coke was imported into India, according to CoalMint Research.
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