India is considering extending its restrictions on the import of low-ash metallurgical coke (met coke) beyond June 2025 to encourage domestic steel mills to procure the steelmaking raw material from local suppliers, Reuters reported, citing sources familiar with the matter.
In December 2024, India, the world’s second-largest producer of crude steel, implemented quantitative import restrictions on low-ash met coke, capping total imports at 1.4 million metric tons for the first half of 2025. The restrictions included country-specific quotas, limiting overseas purchases until June.
Government Push for Domestic Sourcing
According to sources, India’s Commerce and Industry Minister Piyush Goyal has raised concerns over the reluctance of steel producers to procure met coke from local manufacturers. The government aims to strengthen domestic met coke production and reduce dependency on foreign suppliers.
Additionally, the report suggests that Chinese suppliers are rerouting shipments via Indonesia to bypass direct trade restrictions. In response, the Indian government has advised local steel producers to avoid purchases from Indonesia.
Concerns from Indian Steelmakers
Major steel producers, including JSW Steel and ArcelorMittal Nippon Steel India, have expressed concerns over the quality of locally produced met coke. Industry representatives argue that extending the import restrictions could disrupt supply chains and impact steel production capacity expansion—a key factor in meeting India’s rising steel demand.
India’s Growing Scrutiny on Imports
The potential extension of import curbs aligns with India’s wider trade policy shifts, particularly its increased scrutiny of imports from China. This stance follows heightened geopolitical tensions between the two nations, exacerbated by border disputes in recent years.
India’s imports of low-ash met coke have more than doubled in the last four years, highlighting the country’s increasing reliance on overseas supplies. However, the government remains firm in its push for domestic self-sufficiency in steel production.
The final decision on extending import restrictions is expected in the coming months as the government evaluates the impact of the current quota system on the domestic steel industry.
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