Indian steelmakers are urging the government to relax proposed import restrictions on metallurgical coke, a crucial component in steel production. According to a letter from the Indian Steel Association, these curbs could hinder the capacity expansion of steel mills.
In April, India proposed a country-specific import quota limiting annual imports of low ash metallurgical coke to 2.85 million metric tons for one year. This measure aims to protect local producers amid a significant increase in imports, which have surged over 61% in the past four years.
The Indian Steel Association expressed concerns that the proposed quota would impact the ramp-up of blast furnaces, as the country’s steel capacity is expected to grow by approximately 14 million metric tons annually. They requested exemptions for metallurgical coke imports with up to 12.5% ash content and the removal of country-specific restrictions on higher ash content coke.
The association highlighted that local coke production is insufficient to meet the quality and quantity needs of steel mills. They argued that the proposed limit would not satisfy the industry’s capacity addition requirements.
A senior government official indicated that the Trade Ministry is reviewing the issue in consultation with stakeholders, promising to make a decision that considers their interests.
Major steelmakers, including JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India, are part of the Indian Steel Association, which has warned that the proposed curbs could negatively impact the steel sector. The steel ministry has also expressed reservations about imposing limits on metallurgical coke imports due to potential risks to domestic production.