Despite a recent consolidation in prices, Indian steelmakers have continued to favour import metallurgical coke to local material. Apart from the fact that local met coke prices have touched a many-year high, Indian steel mills are said to be struggling to find local met coke due to tightening supplies.
A significant reduction in ex-China exports due to the surge in domestic demand and matching increases in coking coal prices have caused "unprecedented gains in met coke prices."
With ex-China offers having dried up, Indian mills have been forced to conclude deals for material from Columbia, Poland and South Africa at even higher freight costs. According to market sources, at least 136,000 mt have been booked with deliveries scheduled between the end of March and early April.
The sources said that prices for ex-Poland met coke have averaged in the range of $465-470/mt CFR Kandla port in the west, while ex-South Africa met coke deals have been in the range of $450-455/mt CFR. A week ago, ex-China material was available at $433-450/mt CFR.
Meanwhile. local met coke producers in India have continued to aggressively pass on the sharp rise in import coking coal prices to their consumers. Accordingly, domestic offers ranging at INR 39,000-41,000 /mt ($472-496/mt) ex-plant in eastern India were pulled back, with the current prices having settled at around INR 43,000/mt ($520/mt) ex-plant and even higher, in particular Gujarat-based producers have been testing the market with prices at INR 45,000/mt ($544/mt) ex-plant.
Some easing on the supply side is expected with new arrivals at Indian ports over the next 7-10 days, including the arrival of vessels carrying an aggregate 60,000 mt at Haldia port in the east, 50,000 mt at Vishakhapatnam in the south and 30,000 mt at Paradip port in Odisha.
