The steel ministry resists import caps on low ash metallurgical coke, citing domestic demand and quality issues.
India’s Ministry of Steel is opposing restrictions on low ash metallurgical coke imports, a key component in steelmaking, according to a government note and a source familiar with the matter. This stance challenges local producers’ calls for import limits.
Despite local producers’ complaints about rising imports since 2019/20, the Directorate General of Trade Remedies (DGTR) recommended capping imports at 2.85 million metric tons for one year in April. The Commerce Ministry will make the final decision but has yet to comment.
The steel ministry argues against curbing imports due to robust domestic demand and concerns over local production quality. Major suppliers to India include China, Indonesia, and Poland. Imports of low ash metallurgical coke, essential for the world’s second-largest crude steel producer, have increased by over 61 percent in the past four years.
Nagendra Nath Sinha, the steel ministry’s top civil servant, expressed concerns in a letter to the trade ministry, warning that accepting DGTR’s recommendations could disrupt the supply chain, impacting steel production and downstream customers. He emphasised that domestic producers cannot fully meet the country’s demand, particularly regarding quality. Import restrictions could increase costs and negatively affect smaller steel producers, the letter added.
A senior executive at a major steel mill, who requested anonymity, noted that steel producers oppose import curbs as they would drive up steel prices. The Ministry of Steel did not respond to requests for comment.
