Indian met coke prices remain stable on subdued demand

Indian met coke prices have been recorded at INR 36,000/tonne (t) ex-Jajpur this week. Prices remained unchanged amid limited trading activities in the market.

In talks with market participants, it was heard that some merchant coke oven plants are not running at full capacity. Additionally, given the current situation of reduced imported offers, these plants are opting to blend imported met coke.

Coking coal offers

Australian premium hard coking coal prices rose by 3% on a weekly basis and are currently assessed at $335/t on 8 December 2023 on weather-related supply worries. The increase is attributed to concerns about potential disruptions in coal shipping due to tropical cyclone, Jasper, in Australia. With supply constraints looming, there is anticipation of a further rise in spot prices.

Imported coke prices

Chinese met coke prices are assessed at $375/t CNF India, for 65% CSR, CFR India. Effective prices of met coke in Hebei’s Tangshan are assessed at RMB 2,360/t ($334/t). Prices may pick up further in tandem with escalating coal prices.The demand for a third round of price increases, with an additional RMB 100-110/t, is currently under negotiation between coke producers and steel mills.

Coke producers continued output cuts by 20-30% to mitigate losses. A change in the situation is happening as steel mills are suggesting that coke producers should expand production. Moreover, steel mills are not ready to agree to a fourth round of price hike.

Pig iron market

Indian pig iron prices remained largely stable w-o-w and are assessed at INR 36,800/t DAP- Durgapur and INR 39,400/t DAP- Durgapur on 8 December 2023. However, prices have dropped by INR 100/t w-o-w in Raipur market and are currently assessed at INR 37,400/t ex- Raipur.

Outlook

Indian met coke prices may witness further drop owing to low buying interest and better imported offers. Also, the bid offer disparity prevailing in the market may render cookeries to reduce their offers.