Met Coke offers to India Stable on Conservative Buying

Imported Met coke offers to India are more or less stable in current week as sluggish demand and currency devaluation effects have been driving global commodity market robustly.

The current Met coke market seems highly influenced by falling demand and effect of currency depreciation in the market. Current offer for 64% CSR Met coke from China is assessed at USD 144-145/MT CIF India for Oct’15 shipments, while 62% CSR around USD 143/MT CFR India.

Vessel freight for 35,000 MT cargos from China is valued at USD 14.5-15/MT and 45,000 MT cargo at 11.5-12/MT.

China based traders are offering about 45,000 MT Met coke (65%CSR, 1% VM having about 5.5% moisture and 12.5% ash content) at Tianjin Port at USD 145/MT CFR Vizag/Paradip ports for Oct’15 shipments.

[su_quote]A market participant highlighted, “There is market expectation that lack in availability of Australian PCI coal in coming month (owing to production cut of PCI coal in Australia) may support Met coke market. But constantly devaluating Chinese Yuan does not reflect any hope.”[/su_quote]

On one hand landed cost of import in India has risen over INR devaluation against the USD, restricting heavy imports. On the other hand, depreciating Chinese Yuan is (USD 6.3) putting pressure on exporters to hold current offers.

Constantly devaluating INR plunged to 66.4 against USD today, lowest since 2013, influencing Indian Met coke importers to hold their current bookings as market at present does not seem favorable for imports.

China’s Met coke exports

For the Jan’15-May’15 in this year, China exported 4.25 MnT of coke, up 26.5% from the corresponding to the same period last year.

Currency devaluation seems to have triggered increase in exports, which reached 530,000 MT in Aug’15, up by 29.3% from July’15. However, the total export during the Jan’15-Aug’15 is recorded 16.3% lower, at 3.29 MnT than in the same period of last year.

Separately, China exported 1.23 MnT of coke in May, the highest monthly level seen since the country canceled the export tax on the material in Jan’13.