shutterstock.com shutterstock.com
Coke

Government seeks to encourage steelmakers to source products from local producers

India may extend restrictions on imports of low-ash metallurgical coke to encourage steel mills to source this raw material from local suppliers. Reuters reports this with reference to sources.

According to insiders, the reluctance of Indian steelmakers to buy these products from local producers may push the government to extend the restrictions beyond June this year.

Indian Minister of Commerce and Industry Piyush Goyal expressed concern that Indian steelmakers prefer to import coke and emphasized the need to look for this metallurgical ingredient on the local market.

In addition, as coke suppliers from China are redirecting their supplies to India via Indonesia, the government has also asked Indian steelmakers to avoid purchases from Jakarta, the sources said.

Last December, India imposed temporary restrictions on imports of low-ash metallurgical coke for six months starting in January 2025. The new rules set quotas on coke imports for countries, and in the first half of this year, the total supply is limited to 713.58 thousand tons per quarter. At the same time, imports of coke with an ash content of more than 18% (lower quality) remain unlimited.

The government’s decision caused concern among the country’s leading steel companies, who said the restrictions could negatively affect steel production in the country.