Steel Ministry Opposes Import Limits On Low Ash Metallurgical Coke

New Delhi, Jun 6 (KNN) India's Ministry of Steel has opposed any restrictions on imports of low ash metallurgical coke, a key ingredient in steelmaking, according to a government source and an official document.

This stance could deal a setback to domestic producers of the raw material who had sought import limits, reported Reuters.

In April, the Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce and Industry, recommended capping annual imports of low ash metallurgical coke at 2.85 million metric tons for one year. This followed complaints from local producers about rising imports since the 2019/20 fiscal year.

However, the Ministry of Steel has expressed concerns over the quality of domestically produced coke and cited strong domestic demand as reasons for opposing curbs on imports, as per the source and the document.

"The domestic merchant producers of coke are not fully capable of meeting the demand of metallurgical coke in the country, particularly on quality grounds," stated Nagendra Nath Sinha, the top civil servant at the Ministry of Steel, in a letter dated May 29 to the Ministry of Commerce and Industry.

Sinha warned that accepting the DGTR's recommendations "will cause disruption in the supply chain, the production and the supplies to the downstream customers of steel industry."

The letter also cautioned that import restrictions could raise costs and adversely impact smaller steel producers.

China, Indonesia, and Poland are the top suppliers of metallurgical coke to India, the world's second-largest crude steel producer. Imports of low ash metallurgical coke have surged more than 61% over the past four years.

A senior executive at a major steel mill, who requested anonymity as they are not authorised to speak to the media, stated that steel producers oppose import curbs on low ash metallurgical coke because they would lead to an increase in steel prices.

The executive also warned that such restrictions could drive up prices of coking coal, used to manufacture metallurgical coke.

Neither the Ministry of Steel nor the Ministry of Commerce and Industry provided immediate comments when contacted by Reuters.

The final decision on whether to impose import limits rests with the Ministry of Commerce and Industry.

(KNN Bureau)