Met Coke export offers from the key international market have declined, in line with the speculations before the Chinese festival, due to the bearish sentiments prevailing among the Chinese steel makers. Sentiments among the steel producers in China is dampened by the mandate of the Chinese government to cut-down steel production by 50% and also lower Met Coke production by 30% there from mid-Nov’17 to mid-Mar’17 to tackle the air pollution levels.
Offers for the 64% CSR Met Coke are assessed at around USD 365/MT FoB China, lower by around USD 7/MT than the offers in the week-last. Likewise, offers for the 62% CSR Met Coke are assessed at around USD 360/MT FoB China, which are also lower by around USD 7/MT from the week-ago offers.
Source: Coal Mint Research
For Indian buyers, these offers translate into: USD 381/MT and USD 376/MT respectively on CFR India basis.
In India, demand for Met Coke is strong as the buyers have started active purchases in view of the possibility of the prices not to go up, but instead will come down due to the falling offers.
Traders spoken to by CoalMint said that demand was reasonably strong and the prices will come down in the near future.
The domestic Met Coke producers have not yet 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
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