India: Met coke imports increase by 30% m-o-m in May'24
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In May 2024, India witnessed a 30% m-o-m increase in met coke imports, reaching 0.36 million tonnes (mnt) compared to 0.28 mnt in April 2024. The imports were on higher side due to persistent price difference in imported and domestic materials. The imported met coke prices continue to be cost affective compared to the domestic material. The imported met coke prices were at an average of about INR 29,000- 30,000/t for the month as against INR 34,000/t in the domestic market. Also, all the merchant cokeries haven't resumed at full capacity.
The rise in imports was also due to fall in production which was recorded at 3.83 mnt in April, 2024 as compared with 4.32 mnt in March, 2024
The domestic cokeries had increased their prices in response to the DGTR recommendations made for the import restriction and limitations.
Hazira port received the highest imported cargo volumes of 0.19 mnt, followed by Vizag at 0.09 mnt. Haldia and Kolkata ports received 0.04 mnt each.
Met coke import restrictions update:
In a recent letter addressed to the Secretary, Department of Commerce, the steel industry has expressed grave concerns regarding the imposition of "safeguard quantitative restrictions" on the import of low ash metallurgical coke (met coke) into India. The letter emphasises the critical role of met coke in steel manufacturing and the potential adverse effects of these restrictions on the industry.
The letter highlights the potential setback to the Indian steel industry, which has made substantial investments in existing capacities and future expansions. The restrictions are seen as counter-productive to the government's vision of making India self-reliant in steel production, a key element for manufacturing-led economic growth and infrastructure development.
In his concluding remarks, 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. He stressed that maintaining an unrestricted import policy for met coke is vital for sustaining the industry's growth and ensuring its global competitiveness.
Indian met coke imports may continue to rise for the near term on better import offers. The pending decision of import restrictions is yet to clarify the market direction of imports and price dynamics. The final decision on the import quota's is yet to come up.
