Amid the mounting bullishness of Australian coking coal suppliers and comparatively high prices for coke in the domestic market, Indian steelmakers have continued to evaluate import offers, which appear to remain more attractive.
In particular, this week, a major Indian steelmaker JSW Steel is reported to have issued a purchase tender for 25,000 mt of metallurgical coke, with delivery in the first half of April. The auction is anticipated to be closed at around $450-460/mt CFR, which is in line with the price in the latest deal for ex-Indonesia coke last week, but up at least $20/mt compared to the levels two weeks.
According to sources, ex-China met coke has been booked at $450/mt CFR Hazira port in the west, while another deal for ex-China met coke has been reported at $433/mt CFR Haldia port in the east, showing variations in the landed price but still significantly lower than domestic prices. The first deal is reported to have been signed for met coke (65/63% CSR), while the second transaction is said to have been done for 60/62% CSR met coke.
Meanwhile, average local prices for met coke in India have moved sideways since the beginning of February to INR 39,000-40,000/mt ($471-483/mt) ex-works in the western regions and to INR 41,000/mt ($495/mt) ex-works in the eastern regions. However, official offers from the mills are voiced at higher levels, at around INR 43,000/mt ($519/mt) ex-works at Jajpur in Odisha and even higher at INR 44,000/mt ($532/mt) ex-work in the western state of Gujarat.
Despite rising imports, domestic coke producers in India are unlikely to adjust their prices, with most of them believing that the lower import price regime may not last for long in view of improved China-Australia trade relations. The resumption of Australian coking coal exports to China at higher prices and falling met coke stocks across producers and traders in China may embolden Chinese coke suppliers to increase their offers.
According to the information from stevedore circles, a vessel with ex-Poland tonnage of 20,000 mt is scheduled for arrival at Kandla port on February 27, while an ex-Russia cargo of 40,000 mt is due to arrive at Haldia port on March 1, and an ex-Australia cargo of 60,000 mt is expected to arrive at Vishakhapatnam port on March 10, following deals concluded earlier.
