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India's metallurgical coke industry is experiencing pressure due to an influx of more affordable imports from Indonesia and China, reaching a significant volume in recent years. Indonesia's emergence as a major exporter is linked to Chinese investments in its coke industry. With ambitious plans to expand met coke capacity in the near future, India is becoming a major destination for these imports.

The price difference between domestic and imported coke, worsened by the high cost of imported coking coal, is causing Indian mills to opt for the cheaper imports. This trend is putting downward pressure on domestic coke prices, potentially increasing the financial strain on Indian met coke producers.

The Indian metallurgical coke sector is currently experiencing droopy trading activities, with several merchant coke oven plants operating below their full capacity. In a strategic move to cope with reduced import offers, these plants are opting to blend imported metallurgical coke. This decision is influenced by the persistently high levels of coking coal prices, prompting coke refineries to curtail their purchases of coking coal amid a market showing low demand for both coking coal and pulverized coal injection grades.

Regarding imported coke prices, the conclusion of the Lunar New Year holidays did not stimulate the anticipated demand for metallurgical coke in the Chinese market, with both domestic and export prices for March to April loading showing lower levels. Chinese mills, particularly in Hebei and Tianjin, have accepted another reduction in metallurgical coke prices due to weak buying interest. This scenario has led to a preference for Indonesian coke over Chinese, thereby exerting further downward pressure on prices as Indonesian imports are way affordable to satiate Indian met coke demand.

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According to Procurement Resource, the metallurgical coke prices in India are facing a downturn, influenced by the lower prices of imports and changes in coking coal prices. The decline in imported coal prices from Indonesia is making imports more attractive to end-users, leading to an expectation of a near-term decrease in domestic coal prices. This development, combined with the existing pressures from cheaper imports, is likely to intensify the challenges faced by Indian met coke producers.