India is on the verge of deciding whether to impose import restrictions on metallurgical coke (met coke), a crucial raw material in steel production. The proposal, initiated in April 2024 by the Directorate General of Trade Remedies (DGTR), suggests implementing country-specific quotas to cap annual imports at 2.85 million metric tons for one year. This measure aims to protect domestic met coke producers from a significant surge in imports, which have increased by over 61% in the past four years, primarily from countries like China, Japan, Indonesia, Poland, and Switzerland.
Leading steel manufacturers, including JSW Steel and ArcelorMittal Nippon Steel India, have expressed concerns that such restrictions could adversely affect their production capabilities and expansion plans. The Indian Steel Association (ISA) has also petitioned for exemptions, particularly for met coke with ash content up to 12.5%, citing insufficient domestic production of consistent quality to meet industry demands.
The federal steel ministry has echoed these apprehensions, warning that import curbs might negatively impact local steel production. Despite these concerns, the DGTR maintains that the proposed quotas are necessary to safeguard domestic producers from the detrimental effects of rising imports.
The government has concluded consultations with industry stakeholders, and a decision from the federal trade ministry is anticipated imminently. This decision is critical, as it will influence the balance between protecting domestic industries and ensuring the availability of essential raw materials for steel production, thereby impacting the broader economy.
