Coal news and updates

Domestic met coke prices fall on low demand

February 13: Prices of metallurgical coke in the domestic market have dropped by 3-5%  or Rs 500-Rs 1,000 per ton of late as demand has shrunk across India, a source in the coke industry told ISMW.

The west coast market has been hit the most as steel manufacturers have reduced their purchases, prompting coke-makers to operate at a much lower capacity utilisation.

"They (domestic coke makers) are waiting for steel demand to revive as only then can they increase their production," the source said.

Gujarat-based manufactures are selling met coke of size 25-80 mm at around Rs 16,000 per ton, excluding taxes, which is almost Rs 800 per ton less from the previous quotation.

The source said there are reports that a material of size 40-60 mm is being sold at Rs 18,000 per ton, excluding taxes, which is down Rs 1,000 per ton from the previous quotation.

"Coke-makers are facing margin pressures and some of them are selling their material at only slightly above the manufacturing cost," said the source, adding, material of size 25-80 mm is quoted at Rs 16,500 per ton (ex-Vizag) and size 80-150 mm at Rs 20,500 per ton in Kolkata.

Meanwhile, the international coking coal market has dropped by almost 4-5% during January-February, he said.