India restricts imports of metallurgical coke to protect domestic producers

India has announced temporary restrictions on imports of low-ash metallurgical coke, a key ingredient in steel production. This was reported by Reuters.

According to a government decree, the restrictions will be in effect for six months, starting January 1, 2025. The decision is aimed at protecting domestic producers from a significant increase in imports, which, according to the Indian Ministry of Commerce, have increased by more than 61% over the past four years.

The new rules establish quotas for coke imports for countries: in the first half of 2025, the total volume of supplies is limited to 713.58 thousand tons per quarter. Poland and Colombia remain the main suppliers. At the same time, imports of coke with an ash content of more than 18% (lower quality) remain unrestricted.

This decision was a continuation of a proposal put forward in April 2024 by the Directorate General of Merchandise, a division of the Indian Ministry of Commerce. It provided for limiting annual imports of metallurgical coke to 2.85 million tons for one year.

However, the government’s decision has caused concern among leading steel companies such as JSW Steel and ArcelorMittal Nippon Steel. They say that the new restrictions could negatively affect steel production in India, which is the world’s second-largest steel producer.

According to Reuters, the government actively consulted with representatives of the steel industry before imposing the restrictions. Nevertheless, producers warn that a shortage of high-quality metallurgical coke could increase costs and affect the stability of production processes.

As a reminder, India is preparing to introduce a temporary safeguard duty on steel imports of up to 25% to limit the flow of cheap products from China. The decision on the tax will be made after the investigation by the Directorate of Trade Remedies of India, which is expected to be completed within a month.

This year, India has become a net importer due to a sharp increase in the supply of Chinese products. In particular, in April-October, the Indian market received a historic high of 1.7 million tons of Chinese steel, which is 35.4% more than in the same period in 2023.