Indian Steel ministry raises concern over safeguard quantitative restrictions on met coke imports

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 emphasizes the critical role of met coke in steel manufacturing and the potential adverse effects of these restrictions on the industry.

Met coke: An essential raw material

Met coke is an indispensable raw material in the production of steel, particularly in applications requiring high-quality outputs such as alloy steel. Domestic production of coke is currently insufficient to meet the high demand for quality met coke, leading the steel industry to rely heavily on imports. This dependency underscores the importance of a steady supply of met coke to maintain the efficiency and competitiveness of the steel sector.

Disruption to supply chain and production

Mr Nagendra Nath Sinha, Secretary, Ministry of Steel, outlined that acceptance of the Directorate General of Trade Remedies (DGTR) recommendations will disrupt the supply chain, production processes, and downstream customer supplies in the steel industry. The imposition of these quantitative restrictions would act as a trade barrier, limiting the availability of met coke and increasing its cost. Such changes could significantly hinder the competitiveness of the Indian steel industry, especially impacting secondary steel producers without captive coke oven facilities.

Impact on industry growth and self-reliance

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.

Call for reconsideration

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.

With these points, the letter urged the Ministry of Commerce & Industry to prioritize the needs and future potential of the steel industry by rejecting the proposed safeguard restrictions on met coke imports. The decision will be crucial in determining the trajectory of the Indian steel industry's growth and its ability to contribute to the nation's economic objectives.