Indian suppliers of metallurgical coke have continued to adapt to difficult challenges while supplying coking coal, aiming to pass on higher costs to end-users. Specifically, prices for metallurgical coke 80-100 mm of BF grade in the Indian market have increased to around INR 45,000-46,000/mt ($600-614/mt) ex-works in eastern regions, while in the west of India prices have reached INR 48,000/mt ($640/mt) ex-works, up INR 1,500/mt ($20/mt) over the past week. “Even though domestic met coke producers are in particular using the stocks of coking coal that they had imported at roughly $350/mt, they are constantly increasing prices and keeping their prices aligned with coming coal prices,” an Indian trader commented. As coking coal inventories locally in India are assessed to be sufficient until the middle of February, it is not excluded that prices will move up further, market insiders fear. “Producers will either reduce utilization rates or just keep buying at extremely high prices. One way or another, I believe, prices are expected either to stay intact or to rise,” a trader commented with regard to the outlook.
In particular, a leading supplier of metallurgical coke, Vedanta, has floated a tender for 10,000 mt of 20-90 mm low-ash (12.5%, CSR 65 min) met coke, with bids being collected until January 28. For now, the company is reluctant to sell below INR 48,000/mt ($640/mt), supplying to customers on the west coast or INR 50,000/mt ($667/mt) on the eastern coast, SteelOrbis has learned.
Meanwhile, ex-China export metallurgical coke is said to be available at $520-530/mt FOB, versus offers at $540/mt FOB a week ago. With the current freight rate from China to India, the CFR price which is assessed at around $580/mt CFR might be quite attractive for India-based customers.