September 23, 2023 - Indian met coke prices have moved up to INR 37,000/t as against at INR 34,000/t assessed last week. The sharp rise in coal prices have pushed up met coke prices.

Indian steelmakers have been looking for cargoes but material availability remains scarce in the market. There are not many cargoes available for prime hard cargoes. Met coke demand from Indian buyers remain firm as coking coal prices rose faster than met coke, with some end users having Indonesian 65% CSR met coke buying interest at levels of about $340/t for November laycan.

Coking Coal Offers

Australian premium hard coking coal prices increased by $12/t w-o-w to $324/t FOB on 21 September amid limited high-CV supplies. Demand from end-users in India, especially for October loading and fourth quarter cargoes, is adding upward pressure to prices. However, amid limited supply of PHCC, end users have started sourcing from the US. Tightness in spot liquidity continues to lend support to Australian coking prices amid steady seaborne demand from ex-China markets. Trader sources mentioned that prices are unlikely to cool off until spot liquidity improves.

Imported Coke Prices

China's coking coal and coke price are rising on tight supplies due to production cuts by some coke producers, environmental inspections, and vandalism on railway lines. On the demand side, reasons such as restocking before National Day and Asian Games has supported the price hike. China's met coke producers have announced a round of price hike of RMB 100/t ($14/t) on 20 September amid robust restocking due to talks of production cuts. Effective prices of met coke in Hebei's Tangshan are assessed at RMB 2,160 ($296/t). However, it is anticipated that prices may rise further as merchant cokeries are facing weak margins and hence will raise export offers.

Pig Iron Market

Indian pig iron prices were recorded at INR 41,000/t yesterday, down INR 200 d-o-d. Prices have been stable on a weekly basis.

Outlook

Indian met coke prices are anticipated to edge up following the rise in coking coal prices. The increase in coking coal prices is sharper than the rise in coke prices, and so increasing demand for met coke is being seen in the market.