Decision on met coke import restrictions in India by month end: sources

An inter-ministerial meeting was scheduled on 15 July, 2024, to discuss the safeguard recommendations of the Directorate General of Trade Remedies (DGTR) on the import of low ash met coke. The meeting was organized by the Ministry of Commerce & Industry with other stakeholders.

Sources indicate that a decision regarding the restriction on met coke imports to India is likely by the end of this month. It has been reported that both the DGTR and Directorate General of Foreign Trade (DGFT) are convinced that met coke imports should be restricted to protect domestic industries. However, the Ministry of Steel has expressed opposition to this potential restriction, citing concerns over the impact on steel production and costs.

The outcome of the upcoming meeting will be crucial in determining the future of met coke imports into India. The meeting will explore the safeguard recommendations and address the differing viewpoints within the government on this issue.

Background of the met coke imports scenerio

Towards end of June 2023, the DGTR had embarked on a rigorous investigation into the significant increase in imports of low-ash metallurgical coke (below 18% ash). This proactive measure follows allegations raised by five leading companies (BLA Private, Jindal Coke, Saurashtra Fuels, Vedanta Malco Energy and Visa Coke), highlighting the adverse impact of rising imports on domestic producers.

The DGTR had issued recommendations related to the government advocating imposition of safeguard measures amid rising metallurgical coke imports to address escalating trade challenges.

Key recommendations:

1. DGTR has recommended that imports of the product under consideration are regulated and permitted not beyond the levels which have been derived based on an average of imports in the three representative years during the period of investigation, that is, 2019-20, 2020-21 and 2021-22, without considering the surge period, that is, 2022-23.

2.The quota has been adjusted and increased in line with the increase in demand and highest capacity utilisation of the domestic industry during the period prior to the surge period.

3. Imports would be permitted through the EDI ports only to facilitate electronic/real-time monitoring of the allocated quota. The quota would be monitored on a quarterly basis. The total imports allowed in any quarter shall not exceed the total of that quarter and the next. Any unutilised quota for a quarter shall be added to the next quarter.

The above recommendations are applicable for low-ash metallurgical coke, i.e. coke having ash content below 18% falling under the HS Code 2704 excluding coke fines/coke breeze and ultra-low phosphorous metallurgical coke with phosphorous content up to 0.030% with size up to 30 mm with 5% size tolerance for use in ferro alloys manufacturing. The proposed measures, once accepted, will be in effect for one year.

Indian met coke imports up in FY'24

Indian met coke imports in FY'24 have picked up to 3.7 mnt as against 3.69 mnt in FY'23. Poland stood as the largest exporter at 0.84 mnt followed by China and Indonesia at 0.8 mnt each in FY24.