Met Coke Offers Strengthen Amid Active Demand and Short Supply

Chinese Met coke prices increased as domestic dealers were bullish on their offers. Met coke costs fortified in some way or another in last two weeks, after interminably falling from a couple of months.

Met coke business section was active this week as a flurry of trade was heard between China and India. Prices uptick again by USD 2-3/MT this week.

According to SteelMint’s assessment, 64% CSR grade Met coke offers from China are floating in the range of USD 118-119/MT, CFR India. Furthermore, 62% CSR offers are assessed at USD 117-118/MT, CFR India. Alike 64% CSR grade, 62% CSR grade Met coke offers inched up by USD 2-3/MT.

[su_quote]“This week, mainstream Met coke producers in China have increased their prices by RMB 30/MT in domestic market. Fall in coke inventory at plants has incited price rise. However, rising domestic prices and short stock at Chinese port has encouraged rise in export prices”, claimed a trader from China.[/su_quote]

The essential driver of price rise in imported material is bullish Chinese domestic market. The supply insufficiency of the material in domestic business sector has incited an increase in costs. The above circumstance may provoke further export price rise from the nation in coming week.

[su_pullquote align=”right”]“Chinese market is seeing sudden increase during these days. Steel billet prices increased by around RMB 500/MT within four days and still on upper side. Meanwhile, coke prices have also increased. We are not offering the material at low price”, a Chinese manufacturer informed to SteelMint.[/su_pullquote]

The above scenario predicts bullish sentiments in Met coke market in coming weeks . It is anticipated that prices will rise considerably, by about USD 5-6/MT in coming weeks.

[su_quote]An Indian importer told to SteelMint, “Prices are firming up and Chinese suppliers non-committal at these levels and no laycan is available till 20 Apr’16.”[/su_quote] It is to be noted that there has been a remarkable increase in Met coke import in Feb’16. India’s import jumped by about 30% in the month by importing 0.34 MnT of Met coke against the preceding month.