Indian met coke prices fall further on muted trade sentiments

Indian met coke prices fell further this week by INR 1,500/t to INR 37,000-INR 38,000/t as against INR 38,500/t last week.

In the Indian market, met coke trades were muted as the market awaited price stabilisation. A  number of cokeries are not offering in the market and some have withdrawn previous offers.

Chinese coke prices drop

China’s met coke market still lacks strength and producers are facing a new round of coke price cuts which kicked off on 10 May, marking the conclusion of the seventh round of price cuts. Met coke prices in Hebei’s Tangshan were assessed at RMB 2,100/t ($303/t) on 11 May, down RMB 100/t w-o-w. Chinese met coke prices fell significantly to $370/t CNF Hazira, down $26/t w-o-w.

In the Chinese market, coke enterprises have shown reduced interest in further expansion of production and some have decided to reduce production amid lower margins.

Coking coal offers 

Australian premium hard coking coal (HCC) prices rose by $17/t w-o-w on 10 May on increased demand from India. However, prices are still lower than $301/t FOB in the beginning of this month. Market participants believe that the rise in demand may be short-lived as most of end-users are already well-stocked. Meanwhile, on the supply side, there is ample availability for the upcoming months.

Indian steel scenario 

SteelMint’s benchmark assessment for HRC (IS 2062, Gr E250, 2.5-8mm) stood at INR 58,500-59,500/t ($712-785/t) exy-Mumbai on 9 May. CRC prices were assessed at INR 62,500-63,500/t ($761-773/t) exy-Mumbai. The decline in HRC export offers and anticipation of further softening of domestic trade market prices have kept buyers on the sidelines. Indian buyers have been sourcing material on an urgent basis for over two months now. Domestic trade prices for HRC are likely to come under pressure as imports are turning lucrative.

Outlook

Indian met coke prices are not expected see any significant change in the coming weeks as prices seem to be nearing the bottom. Also, buyers are on the sidelines waiting for prices to stabilise and are relying on hand-to-mouth procurement.