India may extend curbs on met coke imports to push local sourcing

In December, the country—ranked as the world's second-largest crude steel producer—imposed quantitative limits with country-specific quotas on low-ash met coke imports.

The curbs, effective from January to June, cap total imports at 1.4 million metric tonnes.

However, Indian steelmakers' reluctance to procure met coke from domestic suppliers could prompt the government to prolong these restrictions, the sources said. They requested anonymity as they were not authorised to discuss the matter publicly.

Government push for local sourcing

According to the sources, Commerce and Industry Minister Piyush Goyal has raised concerns over steel manufacturers' preference for imported met coke, reiterating the need to rely on domestic suppliers.

Additionally, the government has urged local steel producers to refrain from purchasing met coke routed through Indonesia, as Chinese suppliers have been diverting shipments to India via Jakarta, they said.

Tensions between India and China, despite some recent improvements, have remained high since the deadly border clash in June 2020 that resulted in the deaths of 20 Indian soldiers and at least four Chinese troops.

In response, India has tightened its scrutiny of Chinese investments.

Steelmakers cite quality concerns

India's low-ash met coke imports have more than doubled over the past four years. Leading steel manufacturers, including JSW Steel and ArcelorMittal Nippon Steel India, have voiced concerns over the quality of domestically produced met coke.

They argue that any further extension of import curbs could disrupt their expansion plans, as they seek to scale up capacity to meet India's strong domestic demand for steel.