ArcelorMittal’s India joint venture, ArcelorMittal Nippon Steel India (AM/NS India), has privately warned Indian trade officials that a plan to curb imports of a key raw material for steelmaking, low ash metallurgical coke (met coke), overlooks the implications of the ongoing crisis in the Red Sea.
India’s proposed plan would cap met coke imports at 2.85 million metric tons for a year and set quotas on exports from other countries, which AM/NS India says will “very seriously affect” its imports from Europe. The company argues that the plan does not consider the geopolitical situation, as attacks on ships in the Red Sea by Yemen’s Houthi militants have already disrupted trade and increased ocean shipping rates, forcing rerouting of vessels.
AM/NS India, which does not use domestic met coke, believes the proposed import curbs could adversely affect the country’s steel industry by reducing its ability to raise capacity and growth levels. The company has urged the Indian government to reconsider the proposal, as it could hit steel production, and the steel ministry has also reportedly not favored limits on met coke imports due to the risks to domestic output.
The company warned the Directorate General of Trade Remedies (DGTR) in a June 3 letter that “India should not close its eyes to the geopolitical situation and implement a measure that may adversely affect its steel industry.” The plan, which is currently being reviewed by the commerce ministry, has not yet been set to take effect.