Due to much more attractive prices, Indian steelmakers have as expected given considerable attention to import metallurgical coke. In particular, as Steelorbis has learned lately, Indian state-run steel producer Rashtriya Ispat Nigam Limited (RINL) has successfully closed a tender for 75,000 mt of low ash metallurgical (LAM) coke at $445/mt CFR Vishakhapatnam. The supplier is believed to be from Japan, but the information has not been confirmed by the time of publication. Despite a $20/mt price cut compared to the initial targets, ex-China met coke (65/63% CSR) at $410/mt FOB has failed to entice the buying interest of Indian steelmakers. The freight from China to India is assessed at around $30-40/mt.
Meanwhile, in the domestic market blast furnace (BF) coke (64% CSR, 25-90 mm) is officially available at around INR 44,000/mt ($554/mt) ex-works, down INR 1,000/mt ($13/mt) from the previous levels. Despite local sources reporting that it is possible to get INR 40,000/mt ($503/mt) ex-works during negotiations, import material still remains more competitive. “Actually, local producers here have variable pricing now, depending on their current performance,” an Indian trader stated. In particular, a cargo of 10-30 mm coke has been reportedly booked at INR 30,000/mt ($377/mt) ex-works, while last week the widespread offers for the material in question were heard at around INR 40,000/mt ($503/mt) ex-works.
In the meantime, in Europe the metallurgical coke market has remained depressed due to the unfavorable situation in the steel industry. Nevertheless, BF coke prices are reported to have risen to €450-460/mt DAF, up around €20-30/mt compared to previous levels. Meanwhile, nut coke, on the contrary, “has dropped to very low prices at €340-360/mt because of the lack of markets.” “Prices have apparently shown diverse trends. However, I do not see any sensible explanation for that, apart from the pressure from cokeries and markets,” a major European trader commented with regard to the current market developments. It is noteworthy that the euro is still close to parity with the US dollar.
$1 = INR 79.54
€1 = $0.99