Despite a certain relaxation in supply and the appearance of much lower offers of material with long leading times, for now ex-Australia coking coal prices have remained at high levels. In particular, on February 17, an Australian major supplier managed to sell a 30,000 mt cargo of premium medium-volatile hard coking coal, consisting of a few brands, at $440-441/mt FOB, for March 20-29 laycan. “I believe the FOB market is coming off in line with the CFR China price, However, after April there is no reason to keep this number anymore as La Nina will end,” a major Singapore-based trader commented. Meanwhile, an offer for 75,000 mt of low volatility hard coking coal, for June-laycan, which has been voiced at $400/mt FOB, but has failed to meet any interest. “It is too far ahead, too risky,” a representative of a major Indian trading house stated. “It is too risky to book in advance,” an official at an Indian steel mill concurred. “Chinese coke is flooding into India,” the same source added.
SteelOrbis has learned of a fresh booking of ex-China metallurgical coke, done by a major Indian steel mill. Even given the recent rise in met coke prices in China amid the gradual return of market insiders after the Lunar New Year holiday, the price is considered to be overvalued. Specifically, the transaction is said to have been done for 10-40 mm metallurgical coke (62% CSR) at $560/mt CFR, which with the current rate from China to India nets back to $500/mt FOB, which is around $30/mt higher compared to widespread offers. “At $500/mt FOB, BF coke with 30-90 mm is offered, and such a small size as in the deal in question is offered mostly at $470/mt FOB,” a Chinese supplier stated. Previously, ex-China met coke was booked to India at $550/mt CFR, as SteelOrbis has reported before.
In the domestic market in India, prices of 25-90 mm of BF grade metallurgical coke have remained unchanged at INR 52,500/mt ($704/mt) ex-works. There has been actively discussed information in the market that local Indian suppliers have sharply decreased their met coke prices in order to shift low import prices, but the producers have denied this.