Understanding the Indonesian Coke Market: New Price Assessment Launch

The metallurgical coke market is witnessing a significant development with Fastmarkets' upcoming launch of a dedicated price assessment for Indonesian coke. This initiative marks an important milestone in recognizing Indonesia's growing influence in the global coke trade landscape since 2023, providing much-needed price transparency for market participants across Asia and beyond.

Key Details of the Price Assessment Launch

Fastmarkets has announced the introduction of a weekly price assessment (MB-COA-0009) specifically targeting Indonesian coke with 65/63% CSR specifications. The official launch is scheduled for Tuesday, July 1, 2025, following an extensive month-long consultation period that ran from May 26 to June 23, 2025.

The new assessment will be published every Tuesday at 6:30 pm Singapore time, offering timely insights into this developing market. Pricing will be quoted in US dollars per metric tonne on a Free On Board (FOB) basis, providing a standardized reference point for international transactions.

"This new price assessment responds directly to Indonesia's emergence as a key global coke exporter since 2023, filling an important gap in market transparency," notes Fastmarkets in their pricing notice.

The timing of this launch aligns with Indonesia's growing importance in steelmaking supply chains, particularly as Asian steel producers seek diversified and reliable sources of high-quality metallurgical coke.

Technical Specifications of the Assessment

The Indonesian coke price assessment features precise quality parameters designed to reflect commercially relevant material. The core specifications include:

• CSR (Coke Strength after Reaction): 65/63%
• Ash content: 12.5% maximum
• Sulfur content: 0.65% maximum
• M40 (Micum strength index): 84% minimum
• M10 (Micum abrasion index): 7% maximum
• Size range: 25-90 mm
• CRI (Coke Reactivity Index): 25%
• Total moisture: 5% maximum

The assessment covers transactions with a minimum quantity of 15,000 tonnes, on FOB Bahodopi, Morowali, Indonesia basis. The timing parameters specify seaborne shipments with loading laycan of 14-60 days, and payment terms are set as Letters of Credit on sight.

These exacting specifications ensure the assessment represents commercially standardized material that meets the requirements of modern blast furnace operations, particularly in growing Asian steel markets.

Why is Indonesia's Coke Market Important?

Indonesia's Emergence as a Key Coke Exporter

Since 2023, Indonesia has rapidly established itself as a significant player in the global metallurgical coke export market. The country's strategic location in Southeast Asia provides natural logistical advantages for serving key Asian markets, including regional steel powerhouses like Japan, South Korea, and India.

This emergence reflects Indonesia's successful development of integrated industrial parks that leverage domestic resources and strategic investments in processing capacity. The Morowali Industrial Park in Central Sulawesi, in particular, has become a hub for metallurgical processing, combining Indonesia's abundant nickel and coal reserves with efficient production technologies.

The development of Indonesian coke production capacity represents a notable shift in regional supply patterns, with implications for traditional coke exporters such as China and Australia. This diversification benefits buyers by expanding supply options and potentially improving price competitiveness.

The launch of Fastmarkets' dedicated price assessment acknowledges this shift, formalizing Indonesia's position as an established and reliable source in global coke supply chains.

Strategic Importance for Steel Production

Metallurgical coke serves as a critical input for blast furnace operations in integrated steelmaking. Beyond merely providing heat, coke acts as the primary reducing agent that converts iron ore to metallic iron, while also providing physical support to maintain gas permeability throughout the furnace burden.

The 65/63% CSR specification highlighted in the assessment indicates premium-quality coke that can withstand the demanding conditions inside modern blast furnaces. Higher CSR values translate to improved furnace efficiency, reduced fuel consumption, and more consistent ironmaking operations.

The comprehensive quality parameters in Fastmarkets' assessment ensure the coke meets international steelmaking standards:

• Low sulfur content (0.65% maximum) helps minimize environmental impacts and reduce desulfurization costs
• The size range (25-90 mm) optimizes gas flow through the furnace
• M40 and M10 values indicate excellent mechanical strength and resistance to abrasion
• The CRI specification aligns with optimal reactivity for efficient reduction reactions

Indonesian coke with these specifications is positioned to serve diverse markets, particularly steel mills across Asia seeking reliable alternatives to traditional supply sources.

How Does This Price Assessment Benefit Market Participants?

Enhanced Market Transparency

Fastmarkets' new Indonesian coke assessment addresses a critical need for price transparency in this growing segment of the metallurgical coal market. By providing a reliable weekly benchmark based on standardized specifications, the assessment enables more informed decision-making for both buyers and sellers.

Market transparency benefits the entire supply chain by:

• Reducing information asymmetry between counterparties
• Establishing fair market value for contract negotiations
• Enabling more accurate production planning and budgeting
• Providing reference points for dispute resolution

The weekly publication schedule ensures timely price information that captures market dynamics while maintaining methodological rigor. As part of Fastmarkets' comprehensive steelmaking raw materials package, the assessment complements existing price benchmarks across the metallurgical value chain.

Trading and Risk Management Applications

Beyond simple price discovery, the new assessment offers significant applications for trading strategies and risk management. Market participants can leverage the consistent pricing information to:

• Support contract pricing negotiations with objective reference points
• Develop more effective hedging strategies to manage commodity market volatility
• Track price trends and correlations with related commodities
• Identify arbitrage opportunities across different geographic markets

For financial institutions and trading houses, standardized price assessments form the foundation for structured products and derivatives that help industrial consumers manage price risk. While physical futures contracts for Indonesian coke don't yet exist, the establishment of reliable price assessments is typically the first step toward more sophisticated financial instruments.

"Standardized benchmarks reduce arbitrage gaps and enable the development of futures contracts. For Indonesian coke, this assessment could eventually support derivative products," notes a derivatives strategist at a leading commodities intelligence firm.

What is the Methodology Behind the Price Assessment?

Data Collection and Assessment Process

Fastmarkets employs a rigorous methodology for its Indonesian coke price assessment, drawing on the company's extensive experience in commodities price reporting. The assessment process follows several key steps:

1. Data collection: Price information is gathered directly from market participants through structured data submission
2. Verification: Submitted data is verified by commodity experts against market conditions
3. Analysis: Verified data points are analyzed according to established methodology guidelines
4. Publication: The final assessment is published weekly following internal review

This methodology emphasizes market-based price discovery through actual transactions, bids, offers, and assessments from knowledgeable participants. The process is designed to capture fair value at the specified time of assessment while filtering out anomalous or unrepresentative data points.

The assessment follows Fastmarkets' established methodology guidelines, which prioritize transparency, consistency, and market relevance. These guidelines have been developed and refined through decades of price reporting across commodity markets.

Market Feedback and Consultation

The Indonesian coke price assessment was developed following a comprehensive consultation period that ran from May 26 to June 23, 2025. This consultation provided market participants with the opportunity to review and comment on the proposed specifications, methodology, and publication schedule.

Fastmarkets encourages ongoing feedback on the price assessment to ensure it continues to accurately reflect market conditions. The company maintains an open-door policy for methodology discussions and regularly reviews its assessments to confirm alignment with evolving market practices.

Data submitters play a crucial role in enhancing assessment accuracy by providing timely and relevant price information. Market participants interested in contributing to the assessment can contact Fastmarkets at pricing@fastmarkets.com with the subject line "FAO: Bella Cheng, re: Indonesia coke price."

The consultation process demonstrates Fastmarkets' commitment to collaborative market development and ensures the assessment meets the practical needs of industry stakeholders.

How Does Indonesian Coke Compare to Other Global Sources?

Quality Comparison with International Standards

The 65/63% CSR specification positions Indonesian coke squarely in the premium segment of the global metallurgical coke market. This strength parameter is comparable to high-quality coke from established producing regions such as Australia and select operations in China.

Indonesian coke's low sulfur content (0.65% maximum) is particularly noteworthy, meeting increasingly stringent environmental requirements in many markets. This compares favorably to typical Chinese export coke, which often contains 0.65-0.85% sulfur, and aligns with the specifications required by modern Japanese and Korean steel mills.

The size specifications (25-90 mm) are optimized for modern blast furnace operations, allowing for efficient gas flow while maintaining structural integrity within the furnace stack. The technical parameters, including M40 (minimum 84%) and M10 (maximum 7%), indicate excellent mechanical strength that can withstand the crushing pressures and abrasive conditions inside large blast furnaces.

When viewed holistically, Indonesian coke's specifications demonstrate its suitability for high-efficiency steelmaking operations, positioning it as a viable alternative to traditional premium sources.

Competitive Position in Global Markets

Indonesian coke competes in a global market dominated by established suppliers from China, Australia, and Poland. Several factors influence its competitive positioning:

• Geographic advantages: Indonesia's strategic location provides shorter shipping routes to key Asian steel markets compared to suppliers in Europe and the Americas
• Production economics: Integration with domestic coal resources and modern coking facilities enables competitive production costs
• Quality consistency: The standardized specifications in the Fastmarkets assessment highlight Indonesia's focus on meeting international quality standards
• Supply diversity: For buyers seeking to reduce dependence on traditional suppliers, Indonesian coke offers a valuable alternative

As Asian steel production continues to grow, particularly in Southeast Asian nations like Vietnam and Malaysia, Indonesia's proximity provides significant logistical advantages. Shorter shipping distances translate to reduced freight costs and increased supply chain resilience.

The establishment of a dedicated price assessment further strengthens Indonesia's competitive position by providing price transparency and facilitating more efficient market operations.

What Factors Influence Indonesian Coke Pricing?

Key Price Drivers

Several interconnected factors influence Indonesian coke pricing dynamics:

1. Coal input costs: Coking coal represents approximately 70-80% of metallurgical coke production costs. Fluctuations in coal prices directly impact coke economics.

2. Production capacity and utilization: Indonesia's relatively new coking facilities operate with modern technology, but capacity utilization rates affect unit costs and market availability.

3. Energy costs: The coking process is energy-intensive, with electricity and thermal energy representing significant inputs. Indonesia's domestic energy policies influence these costs.

4. Logistics and transportation: Port handling fees, vessel availability, and freight rates affect the final FOB pricing. Morowali's port infrastructure and capacity constraints can impact loading schedules.

5. Environmental regulations: Compliance with environmental standards adds costs throughout the production chain. Indonesia's regulatory framework continues to evolve regarding emissions and waste management.

The interplay of these factors creates a complex pricing environment that the new assessment aims to capture through its systematic methodology.

Market Demand Variables

On the demand side, several key variables influence Indonesian coke pricing:

• Steel production rates in key importing countries, particularly Japan, South Korea, India, and emerging Southeast Asian producers
• Blast furnace utilization rates in major markets, which directly affect coke consumption volumes
• Alternative supply sources and competitive pricing from traditional exporters like China and Australia
• Seasonal factors affecting steel production cycles and shipping conditions, particularly during monsoon seasons

The interaction between these supply and demand variables creates price movements that will be captured in Fastmarkets' weekly assessment. By tracking these movements systematically, market participants can develop a deeper understanding of fundamental drivers and likely future trends.

How to Participate in the Price Assessment?

Becoming a Data Submitter

Market participants can actively contribute to the accuracy and reliability of the Indonesian coke price assessment by becoming data submitters. This process is straightforward and benefits both the market and individual participants:

1. Contact Fastmarkets via email at pricing@fastmarkets.com
2. Use the subject line "FAO: Bella Cheng, re: Indonesia coke price"
3. Provide relevant transaction data, bids, offers, or assessments
4. Specify confidentiality requirements for submitted information

Regular data submission helps ensure the assessment accurately reflects current market conditions. Fastmarkets maintains strict confidentiality protocols for market feedback and data submission, protecting commercially sensitive information while extracting meaningful price signals.

Becoming a data submitter requires no formal agreement, though participants typically follow Fastmarkets' methodology guidelines for data quality and consistency.

Accessing the Price Assessment

The Indonesian coke price assessment will be available through Fastmarkets' comprehensive steelmaking raw materials package. Subscribers can access the assessment through multiple delivery platforms:

• Fastmarkets online price database
• Email price alerts
• API integration for automated data feeds
• PDF reports and data exports

Publication will occur regularly every Tuesday at 6:30 pm Singapore time starting July 1, 2025. As the assessment builds history over time, subscribers will gain access to valuable trend analysis capabilities that can inform strategic decision-making.

The assessment's integration within Fastmarkets' broader raw materials coverage provides context and correlation analysis with related commodities, enhancing its analytical value.

FAQ About the Indonesian Coke Price Assessment

What is CSR in coke specifications?

CSR (Coke Strength after Reaction) is a critical quality parameter that measures metallurgical coke's ability to withstand degradation in blast furnace conditions. The test simulates the high-temperature CO₂ environment of the blast furnace's thermal reserve zone, where carbon gasification reactions can weaken the coke structure.

Higher CSR values indicate stronger coke that maintains its physical integrity deeper into the furnace, providing several benefits:

• Better burden support, preventing furnace hanging and slipping
• Improved gas permeability throughout the furnace stack
• More consistent furnace operations and reduced fuel consumption
• Lower fines generation and improved productivity

The 65/63% specification in the Indonesian assessment represents premium-quality metallurgical coke suitable for modern, large-capacity blast furnaces. The dual numbers (65/63%) typically represent the mean and minimum acceptable values, reflecting the practical variability in industrial production.

Why is Indonesia becoming important in the global coke market?

Indonesia's rising prominence in the global metallurgical coke market stems from several interconnected factors:

1. Strategic investments in coking facilities, particularly within integrated industrial parks like Morowali
2. Access to suitable coal resources both domestically and through established import channels
3. Competitive production costs leveraging modern technology and economies of scale
4. Growing export infrastructure including dedicated port facilities with efficient loading capabilities
5. Proximity to major Asian steel producers providing logistical advantages and reduced shipping times

The country's strategic location within Southeast Asia positions it ideally to serve growing steel industries across the ASEAN region, India, and traditional steel powerhouses like Japan and South Korea. This geographic advantage translates to shorter shipping times and potentially lower freight costs compared to more distant suppliers.

The establishment of Fastmarkets' dedicated price assessment formally recognizes Indonesia's transition from an emerging supplier to an established player in global metallurgical coke markets.

How does this assessment relate to other commodity benchmarks?

The Indonesian 65/63% CSR coke price assessment complements Fastmarkets' existing suite of steelmaking raw materials benchmarks. This integration provides several advantages:

• Expanded coverage of global coke supply sources beyond traditional exporters
• Specific visibility into an emerging supply source with growing significance
• Cross-commodity analysis potential with related assessments for coking coal, iron ore demand trends, and steel products
• Complete value chain monitoring from raw materials to finished steel

For market participants, this comprehensive coverage enables more sophisticated analysis of cost structures, price correlations, and potential substitution effects across the steelmaking value chain. The Indonesian coke assessment serves as one component in a broader analytical framework that supports strategic decision-making.

As the assessment builds historical data, it will also provide valuable insights into seasonal patterns, price correlations, and long-term trends specific to the Indonesian market segment.

Further Exploration

Market participants interested in deepening their understanding of coke price dynamics and assessment methodologies can explore Fastmarkets' methodology documentation on pricing notices. Additionally, following mining industry trends and monitoring oil price movements can provide valuable context for understanding broader commodity markets.

For those specifically focused on Indonesia's emerging role, monitoring capacity developments, logistics infrastructure, and iron ore forecast insights will provide valuable context for interpreting price movements in this new assessment.

The launch of the Indonesian coke price assessment represents an important step in the maturation of global coke markets, reflecting the industry's evolution toward more diverse supply chains and greater price transparency.

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