Indian steel producers have called on the government to sharply raise import quotas for low-ash metallurgical coke, seeking a near sevenfold increase to address what they say is a critical supply crunch, according to sources and a government document.
India, the world’s second-largest crude steel producer, in June extended import curbs on low-ash metallurgical coke, a steelmaking raw material, for six months starting in July.
New Delhi also set country-specific import quotas and capped purchases at 1.4 million metric tons from July 1 to December 31.
Steelmakers have urged Prime Minister Narendra Modi’s administration to raise the import quota to 9.3 million metric tons, with the largest share of additional shipments sought from Indonesia, followed by Japan and Poland, said the sources aware of the matter.
The steelmakers’ requests were recorded in a government document prepared by senior officials.
Steel firms have requested 2.6 million metric tons of imports from Indonesia, far exceeding the government’s current allocation of 66,364 metric tons, according to the document.
Rapid capacity expansion by steel companies has strained met coke availability, and the abrupt policy curbs have dealt a blow to major producers, one of the sources said, speaking on condition of anonymity as deliberations were not public.
Many steel company executives have told the government that domestic met coke output is insufficient to meet demand, said the sources.
The federal Ministry of Commerce and Industry did not respond to a Reuters email seeking comments.
Major steelmakers such as JSW Steel and ArcelorMittal Nippon Steel India have expressed concerns over import curbs, arguing the restrictions disrupt their expansion efforts due to the difficulty in sourcing preferred grades locally.
JSW, India’s largest steelmaker by capacity, met federal trade ministry officials late last month to request a higher allocation of met coke, media reported earlier.
Imports of low-ash met coke have more than doubled over the past four years, with major suppliers including China, Japan, Indonesia, Poland, and Switzerland.
Earlier this year, Piyush Goyal, India’s trade minister, urged steelmakers to source met coke locally.
The federal Ministry of Steel has also supported the import restrictions, saying local supplies of met coke are sufficient to meet demand, media reported earlier.
