India: Govt proposes safeguard measures amid rising met coke imports
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The Directorate General of Trade Remedies (DGTR) of India has issued recommendations related to the government advocating the imposition of safeguard measures amid rising metallurgical coke imports to address escalating trade challenges.
The proposed measures, primarily in the form of quantitative restrictions, are deemed essential for safeguarding public interests amidst growing concerns.
Key recommendations:
1. DGTR has recommended the 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 quarter. 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 of 30 mm with 5% size tolerance for use in ferroalloys manufacturing. The proposed measures, once accepted, will be in effect for one year.
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 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 applicants had proposed a period of investigation during Apr-Dec'22. However, the authorities considered April-March'23 as the most recent 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.
Met coke imports to India surged in FY'23 - India witnessed a 4% rise in met coke imports, reaching 3.77 mnt compared to 3.64 mnt in FY'23.
What to expect in near term?
Market participants indicated that the recommendations have been proposed, and the investigation has been concluded. However, the final decision is still pending. Additionally, it has been revealed that the applicants are planning to propose anti-dumping duties on met coke imports from Indonesia and China. However, it is yet to be proposed and confirmed. This step aims to safeguard the interests of the domestic met coke industry.
