With concerns over ex-Australia coking coal supply having escalated lately due to heavy rainfall, global metallurgical coke producers have become increasingly bullish. Specifically, according to sources, ex-Poland offers for met coke (65-66% CSR) to India have risen to $460-465/mt CFR from the previous widespread $440-445/mt CFR levels valid last week. Meanwhile, prices of met coke of lower quality (60-62% CSR) from Indonesia and China have been heard at $440-445/mt CFR India, up $20-25/mt over the past week. However, it is noteworthy that this week most Chinese met coke sellers have remained out of the market due to the Lunar New Year holiday. «Here, demand is weak this week. Neither plants, nor traders are ready to reduce prices though. People are expecting coking coal prices to rise further on the heels of intensified supply-related concerns, caused by storms in Australia» an Indian trader stated.
One way or another, demand for met coke in India may be firm in the future as, despite the rise in domestic production, supplies have remained tight due to the rising demand from steel mills which have increased their blast furnace outputs in the past few weeks, as SteelOrbis has learned from trade and industry circles. In particular, industry estimates have indicated the aggregate output of domestic cokeries to be around 4 million mt in December, 15 percent higher compared to the levels in November. Meanwhile, output of met coke produced by coke batteries at Indian steel mills totaled 3 million mt in December, likewise up 15 percent from November. Nevertheless, at least two integrated mills are reported to have floated import tenders for 60,000 mt, with validation by January 31, trade circles said.
The latest local prices for blast furnace (BF) coke (65% CSR, 25-90 mm) in India have been heard at INR 45,000/mt ($551/mt) ex-works in the eastern regions and at INR 43,000/mt ($527/mt) ex-works in the western regions, unchanged from the previous week.