Coal news and updates

Imported met coke prices softens, fresh interest in domestic material

June 25: Lack of demand from steel makers prompted metallurgical (met) coke prices to soften by around $4 per ton to $210 per ton cfr India even as some activity has started for domestic coke offered by merchant coke makers, market sources said.

The price of imported met coke was quoted at $214 per ton cfr India on May 23.

“There is no demand in the market for imported coke and as such prices are falling,” a trader said.

“I will offer Chinese coke even at $205 per ton if there is firm bid,” the trader said.

Meanwhile, the situation has improved a bit so far as market for domestic met coke is concerned.

“Overall market is still depressed, but now there is at least some movement as lifting is happening. Prices have not improved, but lifting is happening and this is a good sign,” an official of leading coke maker said.

“First time it has so happened that there is huge difference in prices of various grades and sizes of met coke ranging from Rs 13000 per ton to Rs 18000 per ton,” the official said.

For example, 40-50 mm material is available at Rs 13000 per ton while 50-60 mm material is available at Rs 15000 to Rs 16000 per ton. The price of met coke with size above 70 mm, which is generally used by foundries, is hovering around Rs 18000 per ton.

“The price of foundry grade coke is higher because of low availability and comparatively better demand,” the official said.

“Around two months back, when a new coke battery of Tata Steel was on heating, coke makers in Eastern India such as Visa, Rashmi Metalliks etc. sold met coke at Rs 16000-16500 per ton, but after the battery was operational, the prices fell to around Rs 14000 per ton,” he said.

Meanwhile, the met coke makers expect that prices would improve a bit in coming days as availability of the material will fall by 20-30% due to rain while demand is likely to remain firm.

It is assumed that total availability of met coke produced by merchant plants is about 2.0 to 2.15 lakh tons per month or roughly about 2.4 to 2.6 million tons per annum and the demand is also around that level.