India's Steel Ministry Opposes Import Limits on Key Steelmaking Ingredient

06 Jun 2024 CW Team

India's Ministry of Steel has expressed opposition to limiting imports of low ash metallurgical coke, an essential raw material for steel production, according to a source familiar with the matter and a government note reviewed by Reuters. This stance could hinder local producers who have raised concerns about rising imports since 2019/20.

In April, the Directorate General of Trade Remedies (DGTR), under the trade ministry, recommended capping these imports at 2.85 million metric tons for a year, following complaints from local producers. The final decision, however, rests with the commerce ministry, which has yet to comment.

The steel ministry?s resistance to import restrictions is driven by strong domestic demand and issues with the quality of local production. ?The domestic merchant producers of coke are not fully capable of meeting the demand of met coke of the country, particularly on quality grounds,? stated Nagendra Nath Sinha, the ministry?s top civil servant, in a letter to the trade ministry dated May 29.

India, the world's second-largest crude steel producer, has seen its imports of low ash metallurgical coke surge over 61% in the past four years, primarily from China, Indonesia, and Poland. The ministry warned that adopting DGTR?s recommendations could disrupt supply chains, production, and the steel industry?s downstream customers.

A senior executive at a major steel mill, requesting anonymity, highlighted that import restrictions would elevate steel prices and increase costs for coking coal, further burdening smaller steel producers.

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