The market expectation of a possible Met Coke price fall due to the GST being fixed at 5%( lower than the erstwhile tax of 11.69%) has not materialized as the climbing Coking Coal prices played the spoilsport.
As a consequence of the rising Coking Coal prices international offers also have gone up. The latest offer for 64% CSR Met Coke is assessed at USD 276/MT FoB China, which is higher by USD 21/MT over that in the week last. The recent offer for the 62% CSR Met Coke is also assessed higher by USD 21/MT, at USD 273/MT FoB China, than the week-ago rate.
Source: CoalMint Research
For Indian buyers, these offers translate into: USD 288/MT CFR India and USD 285/MT CFR India respectively.
In India, buyers have not yet started procuring actively, keeping the demand low. The domestic producers also have not revised their ex-works prices in view of the rising Coking Coal prices. Some market participants also speculate the domestic prices to go up in the near term due to the rising prices of the coal.
The ruling ex-works prices in India of the Blast Furnace grade are at: INR 21,500/MT (east coast) and INR 21,000/MT, INR 23,000/MT, INR 24,000/MT, INR 25,500/MT (west coast).
Source: CoalMint Research
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