JSW Steel seeks to increase its coke import quotas to cover shortages

India’s largest steelmaker JSW Steel has called on the government to increase the company’s quotas for imports of low-ash metallurgical coke to overcome the shortage. Reuters reports, citing sources.

At the end of July, according to insiders, JSW Steel executives met with officials from the Federal Ministry of Commerce. They urged government officials to increase quotas for the company, citing operational difficulties at two plants in Karnataka and Chhattisgarh. The volume of additional imports is unknown.

JSW Steel had the opportunity to move some of its surplus from other locations to these facilities, but logistical costs were an obstacle, and production volumes were insufficient to cover the shortfall.

The parties did not comment on the situation.

In June, India extended the import quotas for low-ash metallurgical coke for each exporting country for six months until the end of December, limiting purchases to 1.4 million tons.

Import restrictions have worried major steel producers in the past, including JSW Steel and ArcelorMittal Nippon Steel India. They claimed that these measures hindered their expansion plans, as it was difficult to find the right grades locally.

Imports of low-ash metallurgical coke to the country have more than doubled over the past four years, with China, Japan, Indonesia, Poland and Switzerland being the main suppliers.

In April of this year, India initiated an anti-dumping investigation into imports of low-ash coke from Australia, China, Colombia, Indonesia, Japan and the Russian Federation. The proceedings were initiated following a complaint filed by an Indian industry association, which, in particular, emphasized that there was no difference in the quality of imported and domestic products.