India Could Extend Curbs On Imports Of Raw Material Required By Steel Makers, Says Report

The Indian authorities reportedly could be looking to extend restrictions on low-ash met coke imports beyond June to push domestic steel producers to buy from the local players in the market.

Notably, India’s imports of low ash met coke have increased by more than double over the last four years.

Source : JSI Metals

India could be looking to extend restrictions on low-ash metallurgical or met coke imports to encourage local steel mills to prefer domestic suppliers for their ingredients, media reports said.

According to a report by Reuters, sources noted that the Indian authorities could be looking to extend restrictions on these imports beyond June to push domestic steel producers to buy from the local players in the market.

Notably, last year in December, India imposed quantitative restrictions on imports of low-ash met coke giving country-specific quotas and limiting overall global purchases to 1.4 million metric tonnes from January until June end. The country is the second-biggest producer of crude steel in the world.

Citing sources, the report said that the hesitance of Indian steel producers to buy from local players could push the government to issue these restrictions beyond June.

Union Minister of Commerce and Industry, Piyush Goyal, reported pointed out the need to source the raw materials from the domestic market and shared his reservation about steel mills wanting to import met coke.

Tensions Between India And China

The sources added that Indian authorities have also requested local steel producers to avoid purchasing their ingredients from Jakarta, Indonesia as China are reportedly rerouting their supplies to India through the Asian country. 

Notably, India’s imports of low ash met coke have increased by more than double over the last four years. Major steel producers such as JSW Steel and ArcelorMittal Nippon Steel India have also shared their concerns about the quality of locally produced met coke.

These companies have said that if the restrictions on imports of this raw material are extended, it could also have a negative impact on their plans to increase the capacity to cater to the strong domestic demand for steel in the country. 

However, relations between India and China have remained tense since the neighbouring countries engaged in their biggest military face-off seen in decades regarding their dispute on the border in Himalayas. The conflict ended up killing 20 Indian soldiers and at least four Chinese ones in June 2020.