Import prices of metallurgical coke in India have recently surged to a peak amid tight supplies, but, with mills having sufficiently stocked and consequently large tonnages scheduled to arrive at ports, lately fresh bookings have been very limited, as SteelOrbis has learned from trade sources.
According to sources, ex-China and ex-Indonesia metcoke (64% CSR) offers have been reported in the range of $415-420/mt CFR, while ex-Poland offers (65% CSR) have been heard at $440-450/mt CFR, all in line with the offer which had been voiced in the previous week, with a very few spot cargoes being available for bookings.
The normalization of China-Australia trade relations and the expected resumption of ex-Australia coking coal bookings by buyers from China had resulted in concerns as regards a tightening of supplies in the spot market and a potential surge in price.
Meanwhile, local Indian mills are reported to be in no rush to conclude spot bookings at the current high prices as most are carrying large inventories and port stocks are expected to rise with the new arrivals.
Information on vessel arrivals collated from shipping lines indicated that vessels carrying an aggregate tonnage of 130,000 mt were expected to berth at ports on January 16-21, including shipments of 25,000 mt of metcoke ex-South Africa, 18,000 mt ex-Poland, and 90,000 mt ex-Colombia.
According to market sources, tradable prices for blast furnace (BF) coke (65% CSR, 25-90 mm) in the western regions of India have remained at previous levels, namely, at around INR 41,000/mt ($501/mt) ex-works.
Trade circles said that domestic supply has been tightening rapidly amid strong demand from steel mills and a lot of speculation that buyers from China have confirmed bookings with Indian cokeries, although details have not been readily available.
