Given the lingering setbacks in coking coal supply in leading supplying regions, local Indian producers of metallurgical coke have continued on a strong bull run. Offer prices of 25-90 mm of BF grade metallurgical coke in India have firmed up to INR 50,000/mt ($668/mt) ex-works levels, rising by INR 2,000-5,000/mt ($27-67/mt) over the past week, depending on the regions. In particular, a leading Indian supplier of metallurgical coke, Vedanta, has closed its tender for 10,000 mt of 20-90 mm low-ash (12.5%, CSR 65 min) met coke at INR 49,000-50,000/mt ($655-668/mt) ex-works. According to sources, there has been some rise in buying interest in metallurgical coke from South Korean customers, though with no results yielded this week due to unworkable bids at $635/mt CFR. More attractive offers for metallurgical coke have been voiced by China-based exporters, at $520-530/mt FOB, though with no trading reported yet. "Some South Korean distributors used to purchase same quality of calcined anthracite from Ukraine, but now there is difficulty for shipment due to the mining and container tightness," an international trader stated.
Meanwhile, Indian producers of pig iron have continued to find themselves caught in the crossfire between exorbitant feedstock costs and the refusal of their buyers to accept higher pig iron prices. In particular, having received highest bids at $550/mt FOB, a leading BPI exporter has decided to cancel its tender for 20,000 mt of basic pig iron (BPI) until the situation stabilizes. Meanwhile, another Indian BPI producer has started testing the domestic market with offers at INR 47,400/mt ($634/mt) ex-works for BPI and at INR 50,200/mt ($671/mt) for foundry grade pig iron. “As for today, that is just a list price. No sales happen on that. However, I absolutely agree, the prices are crazy in India,” an Indian source commented with regard to the current market situation. In the meantime, more current BPI offers in the domestic market are voiced at INR 46,000-46,300/mt ($615-619/mt) ex-works, up around INR 3,000/mt ($40/mt) within the past week.
$1 = INR 74.7362