At the beginning of the current week, information about the closure of India-based RINL’s tender for metallurgical coke surfaced in the market. Although it has been not confirmed by the time of publication, most market sources believe that the auction has been apparently concluded within the details which have been actively discussed.
Specifically, India’s Rashtriya Ispat Nigam Limited (RINL) has reportedly closed its global tender for procurement of 60,000 mt of low-ash metallurgical (LAM) coke, which had been floated on December 1. According to trade circles, a mill has met its needs with two lots of 30,000 mt each. In particular, one cargo has been booked in the range of $390-395/mt CFR, while the second lot has reportedly been booked at $398/mt CFR. It has been learned that both bids were submitted by trading firms which have been acting on behalf of actual producers, with delivery commitment by mid-February in the case of both tonnages. The prices in the deals in question are around $17-25/mt lower than in the previous deals done in early December. “Following anti-dumping duty on ex-China met coke in 2018, Poland accounted for the highest market share in India's coke imports. However, with the withdrawal of duty on Chinese coke, Poland has lost its market share to China, and so the price has to be really attractive in order to draw attention,” an Asian trader stated. It is noteworthy that there is a 2.5 percent customs duty for met coke. “I am sure that, if Poland has offered at below $400/mt CFR, the Chinese will offer below that,” an international trader stated. However, Chinese suppliers of met coke claim that ex-China met coke (62/60% CSR) is available at $415/mt FOB, while ex-China met coke (65/63% CSR) is offered at a price around $15/mt higher that that.
Meanwhile, local prices of 25-90 mm of BF grade metallurgical coke in India have declined to INR 38,000/mt ($459/mt) ex-works compared to INR 40,000/mt ($485/mt) ex-works in early December, while tradable levels have been reported at much lower levels. “For blast furnace (BF) grade coke, people are ready to negotiate at INR 36,000/mt ($435/mt) and even below,” an Indian trader stated. Meanwhile, foundry coke of 80-100 mm is offered at INR 42,000/mt ($507/mt), down INR 1,000/mt ($12/mt) from the previous levels.
$1 = 82.81 INR