India's restrictions on imports of low ash metallurgical coke (met coke) are causing major concerns for steelmakers. ArcelorMittal Nippon Steel India (AM/NS India), in a letter to India's Commerce Minister Piyush Goyal, has requested additional met coke allocations from Poland and Japan, stating that domestic suppliers are unable to meet the quality they require. The company emphasized that it may have to shut down its blast furnaces from June 2025 or reduce production in April 2025 if there are problems in the supply of raw materials.
Indian government imposed country-by-country quotas on met coke imports in December 2024 to protect domestic producers. However, major steelmakers such as ArcelorMittal-Nippon, JSW Steel and Tata Steel argue that this regulation could harm the industry. AM/NS India said that although it aims to increase its steel production capacity in India to 40 million tons by 2035, new investments may be postponed due to import restrictions.
Indian steel industry is facing a difficult time with high imports and falling local prices. ArcelorMittal-Nippon is concerned that these restrictions could lead to labor losses and slow the pace of investment. The company is demanding a review of production regulations in India, as uncertainty grows over the future of steel production in the country.
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