India’s steel ministry opposes import controls on key raw material

India’s Ministry of Steel expressed opposition to recent restrictions on low-ash metallurgical coke imports, which could impact domestic raw material producers, Reuters reported on Wednesday.

The disagreement comes after India’s Directorate General of Trade Remedies (DGTR), under the trade ministry, recommended capping low-ash metallurgical coke imports at 2.85 million metric tons annually in April.

This recommendation followed complaints from domestic producers about a surge in imports since 2019/2020.

The ministry opposes import curbs due to two primary concerns:

Strong domestic demand: India has a robust domestic demand for steel, and the ministry believes local producers of metallurgical coke are unable to fully meet this demand, particularly in terms of quality.

Supply chain disruption: Imposing import restrictions could disrupt the supply chain of low-ash metallurgical coke, impacting production and deliveries to downstream steel industry customers, according to a government note reviewed by Reuters.

The ministry’s letter, dated May 29 and signed by Nagendra Nath Sinha, the top civil servant at the ministry, further warns that import restrictions could:

Raise costs: Limiting imports could lead to higher prices for low-ash metallurgical coke, ultimately impacting steel production costs.

Hurt smaller producers: Smaller steel producers, who may be more reliant on imported coke, could be disproportionately affected by price increases.