India: Govt announces quarter-wise quantitative restrictions on coke imports in 2025
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In a recent notification, the Director General of Foreign Trade, Government of India, has sanctioned the imposition of "quantitative restrictions" on imports of low-ash metallurgical coke (met coke) into India.
The country-wise quantitative restrictions on coke have been announced for two quarters of 2025 i.e. January-March and July-September, with the total volume pegged at 713,583t in each quarter.
Notably, met coke with high ash content, above 18%, is outside the scope of the quantitative import restriction imposed with an eye on safeguarding the interests of domestic producers.
Key highlights of notification:
1. Imports would be permitted through the EDI ports only to facilitate electronic/real-time monitoring of the allocated quota.
2. The quota would be monitored on a quarterly basis.
3. Total imports allowed in any quarter shall not exceed the total of that quarter and the next quarter.
4. Any unutilised quota for a quarter shall be added to the next quarter.
5. In case the countries with specific quantity exhaust their allocated QR's , those countries may use their available residual quantity
6. If necessary, further modalities will be notified separately governing such QR in accordance with relevant legal provisions.
What is the case all about?
Towards end June'23, the Directorate General of Trade Remedies (DGTR) had embarked on a rigorous investigation into the significant increase in imports of low-ash metallurgical coke (below 18% ash). This proactive measure followed 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 applicants had proposed a period of investigation during April-December 2022 However, the authorities considered April-March 2023 as the apt period for the purpose of investigation.
By addressing the concerns raised by domestic stakeholders, DGTR aims to maintain a level playing field and bolster the competitiveness of local producers in the face of mounting external pressures.
The Steel Secretary has appealed to the Secretary, Department of Commerce, to reconsider the DGTR's recommendations in the broader interest of the Indian steel industry.
Current scenario
Some Indian met coke producers have raised BF met coke offers this week to INR 32,000-33,000/t exw Jajpur following expectations of imposition of quota restrictions. However, not much trade was reported at these levels. On the other hand, not many import deals were have been heard recently. Indonesian coke plants were indicating $250-255/t FOB and from China at $265-270/t FOB.
What to expect in near term?
"We welcome this move as it will surely support domestic met coke producers who were struggling due to high production cost and cheaper imports," said a met coke producer in conversation with BigMint. A few unconfirmed sources claim that discussion related to AD duty are on the cards. However, no confirmation regarding anti-dumping duty was received till publication of this report.
