In December, India, the world's second-largest producer of crude steel, imposed quantitative restrictions with country-specific limits on imports of low-ash met coke, capping total international purchases at 1.4 million metric tonnes from January through the end of June. The reluctance of Indian steel manufacturers to purchase from domestic suppliers might lead the government to prolong these limitations beyond June, according to the sources.
India's Minister of Commerce and Industry Piyush Goyal stated his concerns regarding the steel mills' tendency to import met coke, highlighting the importance of procuring the raw material domestically, according to sources.
As Chinese met coke suppliers redirect their supplies to India through Indonesia, the Indian government has urged domestic steel manufacturers to avoid purchase from Jakarta, they mentioned.
Even with the relationship between India and China has been strained since the largest military clash in decades on their contested Himalayan border, which resulted in the deaths of 20 Indian and at least four Chinese soldiers in June 2020. In reaction, India has raised its examination of investments coming from Chinese firms.
India's imports of low ash met coke have more than doubled over the last four years. Prominent steel manufacturers like JSW Steel and Arcelor Mittal Nippon Steel India have raised concerns regarding the quality of met coke produced locally. They argued that any prolongation of import restrictions on the raw material might obstruct their efforts to boost capacity in response to India's strong domestic steel demand.
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