Shortage Prevents Indian Met Coke Prices from Falling Down

Met Coke prices in India are in the verge of down slides as prices of Coking Coal are falling in international markets. However, shortage prevailing in Indian market has restricted the prices in the country from moving southwards.

OFFERS FALL FURTHER

Pulled down by the falling Coking Coal prices, Met Coke offers have gone down further. According to the latest assessment, offers for the 64% CSR Met Coke have declined by USD 13/MT to USD 313/MT CFR India; offers for the 62% CSR Met Coke also have gone down by USD 13/MT to USD 310/MT CFR India.

Source: CoalMint Research

Chinese sellers have quoted these offers at: USD 300/MT and USD 297/MT respectively on FoB basis.

SHORTAGE RESTRICTS INDIAN PRODUCERS FROM LOWERING PRICES

Demand in India has not yet picked up as buyers waited for Coking Coal prices to bottom out before resuming purchases. Despite prevalence of low demand, Indian producers have not yet revised their ex-works prices downwards due to short supply of Met Coke. Abrupt rise in Coking Coal prices coupled with supply disruption of the coal in Australia in the recent past had curtailed imports by Indian Met Coke producers, resulting in lower production of Met Coke.A producer in the west coast has even raised its ex-works price by INR 1,000/MT in view of the shortage.

The current ex-works prices of the Blast Furnace grade in India are at: INR 22,000/MT (east coast) and INR 25,000-30,000/MT(west coast).

Nevertheless, demand will go up once Coking Coal prices stabilize, subsequently buyers in the country will resume purchases.

FORECAST

In a tentative forecast, Met Coke prices in India will go down in the coming days, and purchases will rise gradually.