India considers scrapping met coke import duty as steelmakers flag supply crunch: Report – Firstpost

India’s Ministry of Steel has urged the Ministry of Finance to withdraw anti-dumping duties on low-ash metallurgical coke imports, warning that the current restrictions have tightened domestic supply and pushed up prices, Reuters reported on Friday, citing government documents.

The development comes just months after India, the world’s second-largest crude steel producer, imposed a provisional anti-dumping duty in December on low-ash metallurgical coke — commonly known as met coke — for a period of six months. The measure was aimed at curbing cheaper imports and supporting domestic producers.

However, the Steel Ministry has now flagged unintended consequences, saying the curbs have disrupted supply chains and raised input costs for steelmakers across the country.

According to a May 18 office memorandum cited by Reuters, “concerns have emerged regarding the limited availability of met coke in the domestic market and a substantial increase in domestic prices following the imposition of anti-dumping duty, which has imposed a significant financial burden on steel manufacturers,” the ministry said.

Met coke is a critical raw material used in blast furnaces for steel production, and India remains heavily reliant on imports to meet its demand. The country sources the fuel from a range of suppliers, including China, Indonesia, Poland, Japan and Switzerland. Industry participants say import volumes have fallen sharply since the duty was introduced.

According to the report, the ministry also highlighted operational difficulties faced by state-run Rashtriya Ispat Nigam Ltd (RINL), which it said has been unable to procure adequate quantities of met coke at reasonable prices from domestic suppliers.

According to the memorandum, RINL’s input costs have risen by around 20 per cent due to higher met coke prices, affecting its operational viability at a time when the company is already undergoing a government-backed financial revival.

“RINL’s operational viability and competitiveness have been adversely affected due to inadequate supply of met coke,” the Steel Ministry noted, as reported by Reuters, underscoring the strain on one of India’s key public sector steel producers.

The ministry also expressed concern about smaller and medium-sized steel producers, many of which depend on merchant suppliers for their met coke requirements. These firms, it said, have been particularly exposed to price volatility and supply shortages in the domestic market.

“The domestic market has not been able to ensure adequate availability of met coke at competitive rates to meet the requirements of the steel industry,” the memorandum added.

The Finance Ministry has not yet publicly responded to the Steel Ministry’s recommendation, and officials from both ministries did not reply to emails seeking comment, Reuters reported.