India’s steel ministry opposes capping imports of low ash metallurgical coke, citing high demand and quality concerns.
India’s ministry of steel opposes limiting imports of low ash metallurgical coke, a key ingredient in steelmaking, according to a source familiar with the matter and a government note, posing a potential setback for local producers.
Local producers have complained about rising imports since 2019/20, prompting India’s Directorate General of Trade Remedies (DGTR) to recommend capping imports at 2.85 million metric tons for one year in April. The final decision will be made by the commerce ministry, which has yet to comment.
The steel ministry argues against curbing imports due to strong domestic demand and concerns about the quality of local production. China, Indonesia, and Poland are the top suppliers of metallurgical coke to India.
Imports of low ash metallurgical coke by India, the world’s second-biggest crude steel producer, have surged by more than 61% over the past four years.
Nagendra Nath Sinha, the ministry of steel’s top civil servant, expressed concerns in a letter to the trade ministry, stating, “The domestic merchant producers of coke are not fully capable of meeting the demand of met coke, particularly on quality grounds.” Sinha warned that accepting DGTR’s recommendations would disrupt the supply chain and impact production and supply to downstream customers in the steel industry.
The letter also noted that import restrictions could raise costs and hurt smaller steel producers. Steel producers oppose import curbs on low ash metallurgical coke, arguing they would push up steel prices and increase the cost of coking coal, used to make metallurgical coke. A senior executive at a major steel mill, requesting anonymity, echoed these concerns.
(Source: Reuters)
