India Nears Decision on Import Curbs for Metallurgical Coke
India is getting closer to making a decision about limiting the import of metallurgical coke, which is an essential raw material for the manufacture of steel. The action is part of a government effort to balance the interests of domestic steelmakers and met coke producers.
The idea was put up in April and calls for country-specific limitations to limit yearly imports to 2.85 million metric tons for a single year. The goal of this action is to safeguard domestic low-ash metallurgical coke suppliers from an increase in imports, which have increased by more than 61% during the last four years.
However, major steel producers including JSW Steel and ArcelorMittal Nippon Steel have strongly opposed the plan, claiming that such restrictions could affect industry output and cause production disruptions. The federal commerce ministry is now in charge of making the decision following lengthy deliberations, a source with knowledge of the situation said.
“There are conflicting pressures,” the source disclosed, emphasizing the struggle between producers of metcoke and steel. “A decision is expected very soon.”
Targeting imports from nations including China, Japan, Indonesia, Poland, and Switzerland, the Directorate General of Trade Remedies (DGTR) first suggested the quotas. In June, the steel ministry expressed concern that the limitations would hurt domestic steel output.
All eyes will be on the commerce ministry’s next move as the discussions come to an end. The future of the Indian steel sector will depend on whether the government guarantees continuous steel production or gives preference to indigenous met coke producers.
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